Protecting a life you've a life time building.

We realize many of you fear or misunderstand our program, but if you have a sincere interest in finding a solution to a long term problem, ie: a 30 year mortgage, then you will appreciate the following information. That being said...

This new fangled concept of paying your mortgage off in an unrealistic time frame is so outrageous that most American's deem it a sham or far too good to be true. Though it is also a concept that most people want to believe to be true becasue a conventioanl mortgage has become a burned that most will carry to the grave. We talk to hundreds of homeowners every month and we are continually asked; “What are the pitfalls?” “What is the downside?” There are a couple of pitfalls that need to be considered, but I am only going to address the most popular; variable interest rate.

We are acutely aware of the rate environment within this strategy. This is why we consider interest rate the predominate factor in determining whether or not we recommend implementation of the Equity Advantage™. We maintain the right to refuse service if under an aggressive rate posture the payoff projections do not benefit the homeowner.

We can all agree that most of the financial advice we receive tells us to avoid any loan like the plague if the interest rate is not fixed. However, what we don't hear and more importantly, what is most misunderstood is this; the repayment terms have more impact on the payment then the interest rate. Interest rate is only the mechanism by which the monthly payment is calculated. The outstanding balance is the critical factor in determining the monthly payment. For example, if you have a 3/1 Adjustable Rate Mortgage (3 year fixed rate, 27 year adjustable) and you are facing a rate adjustment, the new payment will be calculated on 97% of what you originally borrowed and amortized over the remaining 27 year term. Increased rate, high balance and a shorter term results in a disastrous impact on your monthly finances. You might as well have taken the higher rate when you originally obtained the loan and avoided the adjustable rate feature all together. However...

If you currently have a ARM mortgage, HANG ON TO IT!!! I continually hear reports about the interest rate on ARM's falling below 3.0%. ARM adjustments have fallen so much because the index, one of the numbers used to determine the interest rate your payment is calculated from are at all time lows and should remain that way for the unforeseeable future. Keep that loan! Contact us if you are curious as to why we would make that suggestion. Send your inquiry to info@truthinequity.com.

Back to the example above; if you had the opportunity to reduce the balance by 15%-20% in three years instead of only 3% your payment would drop dramatically because your payment is calculated on a much lower balance. The rate increases won't be able to negatively affect your payment if you can control the balance. Test this theory for yourself. Find a mortgage caclulator online and play with the balance, rate and term to see how the loan would perform if you could drop the balance significantly on a yearly basis. Again, contact us if you need some help with this exercise, info@truthinequity.com.

When you submitted your financial information to us we repsonded with a Debt Free Index(DFI); You could be debt free in 5 years and 3 months. Your DFI or payoff term projection included continual rate increase of .50% at 12 months intervals. What this means to you? We have already taken an aggressive rate posture in a preemptive attempt to disqualify you from participation. We work harder to keep you out of the program than we do to get you involved. I'll say it again, and it is taken very seriously here; We are not in the business of destroying a life you have spent a life time trying to build.

If you have a better understanding of the relationship between interest rate and loan balance you will see opportunities present themselves where previously there was none. It's simple math and is nothing to fear. I encourage you to continue your discovery of this incredible strategy. Taking complete control of your finances is much, much easier than you realize.

Continue your journey by emailing me so I can put you in touch with one of our staff. And speaking of our staff; you'd be hard pressed to find anyone in the country who is more qualifed or dedicated to your success. I can always be reached at bill@truthinequity.com or call me directly at 352-232-1751.
The Truth is in the Proof.
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