What Would You Do with an Extra $300,000?

Imagine waking up one day to find an extra $300,000 in your bank account. Sounds too good to be true? Well, for some homeowners, it's a very real possibility—just by changing the way they structure their mortgage.

Let’s consider this scenario: A couple owns a $1.2 million home with a $600,000 mortgage amortized over 30 years. Their combined take-home income is $12,000 per month, and they are excellent savers, spending only $3,000 per month.

With a traditional mortgage, they would pay down their loan over 30 years and, using a market-average interest rate, end up paying over $400,000 in interest over the life of the mortgage—money that comes from their after-tax income. But what if there was a better way?

By leveraging a unique mortgage product and strategy that allows them to use 100% of their income to offset their mortgage balance, they could:

• Pay off their mortgage in less than 7 years

• Reduce their total interest costs to about $100,000

• End up with an extra $300,000 in their bank account

This strategy isn’t for everyone. It works best for homeowners who have a significant difference between their income and expenses each month, are financially disciplined, and want to minimize interest while paying off their mortgage much faster.

Schedule a call if you have a mortgage, and each month have a big difference between your income and monthly spending and are diligent with saving—this mortgage product could work for you. Interested to see if this would work for you? Reach out.