Let's say you pay $10,000 a year in interest on your mortgage. When you go to file your taxes at the end of the year, you get to deduct the $10,000 in mortgage interest from your tax liability. What this means is that if you earn $50,000 per year, you get to deduct your mortgage interest of $10,000 from your earnings of $50,000. So $50,000 minus $10,000 leaves you with $40,000 in tax liability. This means that you only pay taxes on the $40,000. So if you are in a 25% tax bracket that means the taxes you have to pay for that year are 25% of $40,000. In this case that is $10,000 taxes owed. But keep in mind you paid mortgage interest of $10,000 to get there. So during the course of a year you paid $10,000 in taxes and $10,000 in mortgage interest for a total of $20,000 out of your pocket.
Now let's say you have your home paid off and paid no interest on a mortgage. You don't get to deduct anything from your $50,000 in income. This means now you pay taxes on the full $50,000. In the 25% tax bracket this means you owe $12,500 in taxes that year. But in this case you paid no interest during the year so there is only $12,500 out of your pocket.
Would you rather pay $10,000 to the mortgage company and $10,000 to the IRS, for a total of $20,000 out of your pocket? Or would you rather just pay $12,500 to the IRS?
Paying off your mortgage makes good financial sense.
We have found that FreedomBiWeekly.com homeowners are much more dedicated to the concept of paying off their mortgages. Anyone can pay an extra $50-$100 on their mortgage from time to time and they will save money. But FreedomBiWeekly.com homeowners are paying their homes off much faster, often times in less than 10 years. This is because they have access to the tools and reports that show them how quickly it can be done. FreedomBiWeekly.com homeowners have the ability to customize & modify their payment plan each and every month. Our biweekly mortgage program will show you exactly how each dollar spent will affect your mortgage payoff results.
Over the last few years there have been many new programs come into the market promising to pay off your mortgage in record time without increasing your monthly payment or changing your lifestyle. These programs would have you believe there is secret mathematical formula that will pay your mortgage off faster. The truth is, the only way for you to “accelerate” your mortgage is to pay extra money toward the principle balance, this does require you to increase your monthly payment. This in turn reduces the term of the loan and reduces the interest paid over the life of the loan.
The FreedomBiWeekly.com biweekly mortgage program is different because we put you in control. Our software allows you to personalize an easy-to-understand game plan that allows you to pay off your mortgage as fast as possible.