Interest Rate Swap

Most people want to swap a higher interest rate for a lower one to save money, but is it worth it once you refinance and add closing costs?

When you refinance for a lower interest rate it can save you money in the long run, but realize that all of the additional fees they add to your principle amount will take years to recoup potential savings.

The average life span of a mortgage in the US is 5 years. In that five year time block consumers pay anywhere from 77.71 - 83.9% interest on a note with a 4.75 - 6% interest rate (the monthly interest/by the principle and interest)

When you begin paying on a new mortgage over 80% of your payment goes to interest. It takes a substantial amount of time before you gain any positive equity position. So if one refinance or makes a new purchase every five years they are just digging a larger and larger black hole that is sucking more and more of their money into the interest void of "never recovered money".

Everyone does it that way because we don't think there is an alternative... 

So can you really swap an interest rate for another without paying fees and loosing more money....

Yes - By using an Interest Cancellation Account.

Let me explain, there are two types of loans Open-Ended and Closed-Ended, one has the leveraging ability to cancel interest on the other if used properly. Let me explain how:

Closed-Ended; you can only put money in by making full scheduled payments (amortized payment schedule), you can not take money out, interest is calculated on the months end principle balance, additional payments applied to principle amount are not credited until the following month.

Open-Ended; you can take money out and you can put money in, views daily balance to assess interest charges, You only pay interest on the average daily balance, money applied to principle amount effect interest charges immediately, you can utilize float time to your advantage.

By leveraging an open-ended account to pay down principle amounts of closed-ended account you can drastically reduce the amounts of interest you will have to pay. You are now using cheap money to pay off expensive money, Interest Rate Swap without paying additional fees.

Caution - Don't attempt this on your own. It takes strong money disciplines to manage debt correctly and if managed incorrectly can wind up costing you thousands more. This strategy to save money is most effective when driven my mathematical computations based on the variables of ones financial situation. The more variables there are the more possibilities there are in a strategic interest cancellation schedule.

To receive a customized Interest Rate Swap Assessment complete the contact form, mention that you read this article and I will wave the $75.00 fee.