What Most People Don't Know About Their Mortgage, Part 1

Just by knowing what I'm about to reveal to you, you'll be way ahead of most other home buyers. Even though I don't know your exact situation, what I'm about to tell you here is true, in the case of most home loans - especially in America.

Let's first remember that only a fraction of home buyers keep a mortgage for more than a few years before we refinance or sell! I believe the average mortgage is presently 5 years. And most of the interest paid to the banks is generated in those early years! So...you're getting really hammered in those first years! The "effective interest rate" you are paying is not necessarily the 6% that they might quote; the effective rate is somewhere between 6% and a whole lot more per year, depending on how many years you keep the loan. And for the average 5-year loan duration, the effective interest paid will then be significantly higher that the APR (annual percentage rate) initially calculated. (I mean...WAY higher, as you'll see in our future updates of the Mortgage Acceleration Report.)