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DO YOU OWN YOUR HOME – OR DOES YOUR LENDER?
FOR MOST OF US, THE MORTGAGE IS THE LARGEST DEBT WE WILL EVER HAVE!
On average our clients learn to:
Pay off their 30 year loans
in 8-14 years!
Without makingHigher
Monthly payments
No Mortgage Payment?What could you do?
MORT – GAGEPledge Until Death!
mort·gage (mōŕgij) n. [[ OFr – mort, dead
+ gage, pledge]]
1 to pledge (property) by a mortgage
2 to put an advance claim on / to mortgage one’s future/
The Cost of a $200,000 Mortgage @ 6%
(Is It or Isn’t It 6% ?)
Year Total Paid Principal Interest Balance
1
2
10
20
30
14,389
28,778
143,892
287,784
431,677
2,456
5,036
32,628
91,992
200,000
11,933
23,714
111,263
195,791
231,677
197,543
194,936
167,371
108,007
0
Compare the Options
$200,000
TotalRepay
Principal& InterestFortnightl
y
Principal
& Interest
Monthly
YEARS TO BE DEBT FREE
INTEREST PAID
12 YEARS
$97,637
25 YEARS
$184,367
30 YEARS
$231,677
YOU HAVE CHOICES!!REGULAR CHEQUE ACCOUNTDeposit Income
HouseholdCheque Acct
Earns
0%Interest
• Cheques• Service Fees• Money orders• Travelers cheques• Bounced cheques
Mortgages
Living Expenses
Credit Cards, etc.
Miscellaneous
INTEREST ONLY 2 ND MORTGAGE
IncomeLowers
Balance –
Saves $$(interest)
Deposit Income/Make Payment
Mortgages
Living Expenses
Credit Cards, etc.
Miscellaneous
We PayFor
Benefits
• Simple Interest
• Interest Only
• Pre-Approved Limit
• Purchasing Power
John & Jane
What’s In A Home?
Value
1st Mortgage
Payment/Month
Principal/Month
$400,000
$200,000
$1,200
$200
Fixed 1st Mortgage
1st Year Balance
Yearly Principal
Sub Total
$200,000
$2,500
$197,500
Example: Consumer Debt Debts That Could Be Consolidated
Loans (car, etc.) Amt. Pymt.
Cards, etc. Amt. Pymt.
Total
$20,000
$30,000
$750
$500
$1,250
2nd Mortgage Bal. $50,000
$50,000
6%
Interest
Only
Line of Credit $50,000
Payment $250
Pay Off
-$250
$1,000
Income & Expenses
Income
Expenses
Left Over
$5,000
$4,000
$1,000
LINE OF CREDIT AS THE CHEQUE ACCOUNT
Start Balance
Payment / Income
Balance
Expenses
Balance Month One
Payment / Income
Balance
Expenses
Balance Month Two
$50,000
-5,000
45,000
+4,000
49,000
Surplus 1st mo. $1,000 -5,000
44,000Surplus 2nd mo. $1,000
+4,000
48,00012 Month $12,000
2nd Balance $38,000
Reducing the 1st Mortgage1st Year Bal.
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 1
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 2
$200,000
$2,500
$197,500
From the LOC
$185,500
$12,000$12,000
Amortization Schedule
Amortization Schedule For: John and Jane
Property Address: 1324 Owe D’ Bank Way
Loan Programme:
Loan Amount $200,000
Interest Rate 6%
Term 360 Months
1 6.0 1,199.10 199.10 1,000.00 199,800.90
2 6.0 1,199.10 200.10 999.00 199,600.80
3 6.0 1,199.10 201.10 998.00 199,399.70
4 6.0 1.199.10 202.10 997.00 199,197.60
5 6.0 1,199.10 203.11 995.99 198,994.49
6 6.0 1,199.10 204.13 994.97 198,790.36
7 6.0 1,199.10 205.15 993.95 198,585.21
8 6.0 1,199.10 206.17 992.93 198,379.04
9 6.0 1,199.10 207.20 991.90 198,171.84
10 6.0 1,199.10 208.24 990.86 197,963.60
11 6.0 1,199.10 209.28 989.82 197,754.32
12 6.0 1,199.10 210.33 988.77 197,543.99
14,389.20 2,456.01 11,933.1913 6.0 1,199.10 211.38 987.72 197,332.61
14 6.0 1,199.10 212.44 986.66 197,120.17
15 6.0 1,199.10 213.50 985.60 196,906.67
16 6.0 1,199.10 214.57 984.53 196,692.10
17 6.0 1,199.10 215.64 983.46 196,476.46
18 6.0 1,199.10 216.72 982.38 196,259.74
19 6.0 1,199.10 217.80 981.30 196,041.94
20 6.0 1,199.10 218.89 980.21 195,823.05
21 6.0 1,199.10 219.98 979.12 195,603.07
22 6.0 1,199.10 221.08 978.02 195,381.99
23 6.0 1,199.10 222.19 976.91 195,159.80
24 6.0 1,199.10 223.30 975.80 194,936.50
14,389.20 2,607.49 11,781.71
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
25 6.0 1,199.10 224.42 974.68 194,712.08
26 6.0 1,199.10 225.54 973.56 194,486.54
27 6.0 1,199.10 226.67 972.43 194,259.87
28 6.0 1.199.10 227.80 971.30 194,032.07
29 6.0 1,199.10 228.94 970.16 193,803.13
30 6.0 1,199.10 230.08 969.02 193,573.05
31 6.0 1,199.10 231.23 967.87 193,341.82
32 6.0 1,199.10 232.39 966.71 193,109.43
33 6.0 1,199.10 233.55 965.55 192,875.88
34 6.0 1,199.10 234.72 964.38 192,641.16
35 6.0 1,199.10 235.89 963.21 192,405.27
36 6.0 1,199.10 237.07 962.03 192,168.20
14,389.20 2,768.30 11,620.9037 6.0 1,199.10 238.26 960.84 191,929.94
38 6.0 1,199.10 239.45 959.65 191,690.49
39 6.0 1,199.10 240.65 958.45 191,449.84
40 6.0 1,199.10 241.85 957.25 191,207.99
41 6.0 1,199.10 243.06 956.04 190,964.93
42 6.0 1,199.10 244.28 954.82 190,720.65
43 6.0 1,199.10 245.50 953.60 190,475.15
44 6.0 1,199.10 246.72 952.38 190,228.43
45 6.0 1,199.10 247.96 951.14 189,980.47
46 6.0 1,199.10 249.20 949.90 189,731.27
47 6.0 1,199.10 250.44 948.66 189,480.83
48 6.0 1,199.10 251.70 947.40 189,229.13
14,389.20 2,939.07 11,450.13
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
49 6.0 1,199.10 252.95 946.15 188,976.18
50 6.0 1,199.10 254.22 944.88 188,721.96
51 6.0 1,199.10 255.49 943.61 188,466.47
52 6.0 1.199.10 256.77 942.33 188,209.70
53 6.0 1,199.10 258.05 941.05 187,951.65
54 6.0 1,199.10 259.34 939.76 187,692.31
55 6.0 1,199.10 260.64 938.46 187,431.67
56 6.0 1,199.10 261.94 937.16 187,169.73
57 6.0 1,199.10 263.25 935.85 186,906.48
58 6.0 1,199.10 264.57 934.53 186,641.91
59 6.0 1,199.10 265.89 933.21 186,376.02
60 6.0 1,199.10 267.22 931.88 186,108.80
14,389.20 3,120.33 11,268.8761 6.0 1,199.10 268.56 930.54 185,840.24
62 6.0 1,199.10 269.90 929.20 185,570.34
63 6.0 1,199.10 271.25 927.85 185,299.09
64 6.0 1,199.10 272.60 926.50 185,026.49
65 6.0 1,199.10 273.97 925.13 184,752.52
66 6.0 1,199.10 275.34 923.76 184,477.18
67 6.0 1,199.10 276.71 922.39 184,200.47
68 6.0 1,199.10 278.10 921.00 183,922.37
69 6.0 1,199.10 279.49 919.61 183,642.88
70 6.0 1,199.10 280.89 918.21 183,361.99
71 6.0 1,199.10 282.29 916.81 183,079.70
72 6.0 1,199.10 283.70 915.40 182,796.00
14,389.20 3,312.80 11,076.40
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
REDUCING THE 1st MORTGAGE
1st Year Bal.
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 1
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 2
$200,000
$2,500
$197,500
From 2nd Mortgage
$185,500
$3,500
$182,000
$12,000$12,000$12,000
$170,000
INTEREST
SAVING
$47,979
$12,000
49 6.0 1,199.10 252.95 946.15 188,976.18
50 6.0 1,199.10 254.22 944.88 188,721.96
51 6.0 1,199.10 255.49 943.61 188,466.47
52 6.0 1.199.10 256.77 942.33 188,209.70
53 6.0 1,199.10 258.05 941.05 187,951.65
54 6.0 1,199.10 259.34 939.76 187,692.31
55 6.0 1,199.10 260.64 938.46 187,431.67
56 6.0 1,199.10 261.94 937.16 187,169.73
57 6.0 1,199.10 263.25 935.85 186,906.48
58 6.0 1,199.10 264.57 934.53 186,641.91
59 6.0 1,199.10 265.89 933.21 186,376.02
60 6.0 1,199.10 267.22 931.88 186,108.80
14,389.20 3,120.33 11,268.8761 6.0 1,199.10 268.56 930.54 185,840.24
62 6.0 1,199.10 269.90 929.20 185,570.34
63 6.0 1,199.10 271.25 927.85 185,299.09
64 6.0 1,199.10 272.60 926.50 185,026.49
65 6.0 1,199.10 273.97 925.13 184,752.52
66 6.0 1,199.10 275.34 923.76 184,477.18
67 6.0 1,199.10 276.71 922.39 184,200.47
68 6.0 1,199.10 278.10 921.00 183,922.37
69 6.0 1,199.10 279.49 919.61 183,642.88
70 6.0 1,199.10 280.89 918.21 183,361.99
71 6.0 1,199.10 282.29 916.81 183,079.70
72 6.0 1,199.10 283.70 915.40 182,796.00
14,389.20 3,312.80 11,076.40
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
73 6.0 1,199.10 285.12 913.98 182,510.88
74 6.0 1,199.10 286.55 912.55 182,224.33
75 6.0 1,199.10 287.98 911.12 181,936.35
76 6.0 1.199.10 289.42 909.68 181,646.93
77 6.0 1,199.10 290.87 908.23 181,356.06
78 6.0 1,199.10 292.32 906.78 181,063.74
79 6.0 1,199.10 293.78 905.32 180,769.96
80 6.0 1,199.10 295.25 903.85 180,474.71
81 6.0 1,199.10 296.73 902.37 180,177.98
82 6.0 1,199.10 298.21 900.89 179,879.77
83 6.0 1,199.10 299.70 899.40 179,580.07
84 6.0 1,199.10 301.20 897.90 179,278.87
14,389.20 3,517.13 10,872.07 85 6.0 1,199.10 302.71 896.39 178,976.16
86 6.0 1,199.10 304.22 894.88 178,671.94
87 6.0 1,199.10 305.74 893.36 178,366.20
88 6.0 1,199.10 307.27 891.83 178,058.93
89 6.0 1,199.10 308.81 890.29 177,750.12
90 6.0 1,199.10 310.35 888.75 177,439.77
91 6.0 1,199.10 311.90 887.20 177,127.87
92 6.0 1,199.10 313.46 885.64 176,814.41
93 6.0 1,199.10 315.03 884.07 176,499.38
94 6.0 1,199.10 316.60 882.50 176,182.78
95 6.0 1,199.10 318.19 880.91 175,864.59
96 6.0 1,199.10 319.78 879.32 175,544.81
14,389.20 3,734.06 10,655.14
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
97 6.0 1,199.10 321.38 877.72 175,223.43
98 6.0 1,199.10 322.98 876.12 174,900.45
99 6.0 1,199.10 324.60 874.50 174,575.85
100 6.0 1.199.10 326.22 872.88 174,249.63
101 6.0 1,199.10 327.85 871.25 173,921.78
102 6.0 1,199.10 329.49 869.61 173,592.29
103 6.0 1,199.10 331.14 867.96 173,261.15
104 6.0 1,199.10 332.79 866.31 172,928.36
105 6.0 1,199.10 334.46 864.64 172,593.90
106 6.0 1,199.10 336.13 862.97 172,257.77
107 6.0 1,199.10 337.81 861.29 171,919.96
108 6.0 1,199.10 339.50 859.60 171,580.46
14,389.20 3,964.35 10,424.85109 6.0 1,199.10 341.20 857.90 171,239.26
110 6.0 1,199.10 342.90 856.20 170,896.36
111 6.0 1,199.10 344.62 854.48 170,551.74
112 6.0 1,199.10 346.34 852.76 170,205.40113 6.0 1,199.10 348.07 851.03 169,857.33
114 6.0 1,199.10 349.81 849.29 169,507.52
115 6.0 1,199.10 351.56 847.54 169,155.96
116 6.0 1,199.10 353.32 845.78 168,802.64
117 6.0 1,199.10 355.09 844.01 168,447.55
118 6.0 1,199.10 356.86 842.24 168,090.69
119 6.0 1,199.10 358.65 840.45 167,732.04
120 6.0 1,199.10 360.44 838.66 167,371.60
14,389.20 4,208.86 10,180.34
Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - Remaining No Rate Payment Principal Interest Balance
REDUCING THE 1st MORTGAGE
1st Year Bal.
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 1
Yearly Prin.
Sub Total
From 2nd Mort
Total Year 2
$200,000
$2,500
$197,500
From 2nd Mortgage
$185,500
$3,500
$182,000
$12,000
$170,000
Interest Savings
From Amortization$47,979
Savings 2nd Year$32,825
$80,804
$12,000
$12,000
THE SOLUTION
• We evaluate client’s total consumer debt
• We calculate the exact split for your 1st Mortgage and Line of Credit to maximise savings.
• Use your LOC like your current household cheque account to avoid interest and simplify your finances.• Should your loans need restructuring, we are
always there to assist.
“Many companies will give you a mortgage …. We show you how to get out of one!”
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