Frequently Asked Questions
Q: What about my tax deduction for my mortgage?
A: Even in the top tax bracket in the country, a taxpayer must spend $100 in interest to save $50 in taxes. Let’s say John Smith earns $100,000/yr and spends $25,000 on his Mortgage. In the 50% tax bracket, he pays $37,500 in taxes, because of his deduction, and $25,000 in mortgage, leaving $37,500 in after-tax dollars for himself. Even if this deduction drops Mr. Smith into the 40% tax bracket, he is still left with only $45,000. By eliminating the mortgage, he keeps $50,000 even in the top bracket
Q: How much more do I have to pay to my mortgage?
A: The key to this program is to teach you how to temporarily put ALL of your income toward your mortgage to limit the amount of interest you must pay.
Q: Is this legal?
A: Completely! Our program only uses bank products that are readily available at most lending institutions.
Q: How does this work?
A: This program works by supressing the principal balance of your mortgage debt, thereby lowering the interest charged by your mortgage holder.
Q: How much does it cost?
A: About 1-2 points depending on your total debt load. This generally amounts to less than 5 cents of every dollar the program will save you.
Q: What is the difference between amortized interest and simple interest?
A: Simple interest is calculated on a daily basis. The annual rate of interest is divided by 12 and multiplied by the average daily amount owed to calculate a month’s worth of interest. Amortized interest is calculated on a fixed term of repayment. The amount of interest to be paid is predetermined based the amount borrowed, the interest rate and the term of the loan. That amount of interest is then divided up to be paid to the lender in fixed, incremental payments over the course of the term of the loan. If kept for the same amount of time with the same interest rate and principal, the loans would cost the same in interest. The difference between amortized interest and simple interest is that simple interest is calculated on a daily basis while amortized calculated on a monthly basis.
Q: How do I get started?
A: The first step is to fill out our free online financial analysis. This will give us a better understanding for your financial situation and give you a complete picture of your finances.