Australian Mortgage

Australian Mortgage

Has anyone ever paid off a house using this method. I heard of it about a year ago but when it was explained to me the person said it is best for people who have huge cash flow. It is explained on this site http://freedmontmortgage.com/products/asset.htm

I am not associated with any of these sites or programs. I was just curious if anyone has done this and how they liked it. It is a very interesting concept and you can payoff your house in like 5 years. Let me know your thoughts. CBRPower I know you were looking at something like this as well so let me know your thoughts.

Thanks guys.

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Yeah

It's kind of a confusing topic but yes, I have heard of it.

As I understand the way it works,
you put ALL your money (paychecks) to work paying down the mortgage balance as soon as you get paid.

Then when you need the money for bills you would pull it back it out of the house (typically through a HELOC).

So let's say you get paid on the last day of the month but but dont need to pay bills till the 7th of the next month. You would save 7 days of interest on whatever your paycheck was (put the paycheck "into" the house on the last day of the month and take it "out" of the house on the 7th.)


It's kind of a neat concept.

It's kind of a neat concept. I spoke with a guy who specializes in this area. He called it something else, (reverse mortgage maybe?) He works alongside a financial company that sells universal life insurance. I wasn't quite sold on the life insurance part because I didn't quite understand it, but as our assets grow I might be looking into it again. cbr, mark, do you know much about the universal life insurance aspect?

Thanks, rpatten, for bringing this up.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


do it now?

We just got a 100% HELOC to use for purchasing properties. Do you think it would be a good idea to try that system on your own, or do you think it has to be part of a system that is set up for you?
I think I'll do that if it would work.

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Not a reverse mortgage. That

Not a reverse mortgage. That is for (generally) elderly people who need cash now and want to stay in their house ie dont want to sell. The bank gets the property when the person passes on.

I am not a fan of universal or whole life insurance. I have always been a "buy term and invest the savings" kind of guy...


Rina

This is a totally different thing. It is a specific program that you use with your mortgage. Like wmark said it is not a reverse mortgage that is very different. This is just a quick way to pay your house off.


No, I just named it wrong.

No, I just named it wrong. It's what you guys were talking about. I just know he didn't call it Australian mortgage, it was something else. But do you think you could do it on your own, or is it something you have to have "officially" set up?

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Not sure

I would talk to your mortgage company. I assume that it would work. It is really just a concept where you are paying big sums of money so that during certain days of the month your mortgage is essentially paid off. That is at least how I understand it. The benefit of this is you would then have days where you wouldn't pay and interest. At least that is what I understand of the program. I would just ask your mortgage company if you could use this strategy. It seems like it wouldn't matter. If not, then I would just use a company that offers the Australian Mortgage.


THe problem has always been

THe problem has always been that you can pay as much as you want ON your mortgage.. But once you make that payment you can't get it back out. That is why a HELOC is typically used. You pay down the HELOC on the day you get paid and then pull it back out when you need to pay bills.


But you could just DO that,

But you could just DO that, right? We just got our HELOC, I haven't used any of it yet, so I don't know how many "draws" or whatever you can take in a given amount of time. I'll check into it.

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


who

who will be the first one to personally test this?

__________________

You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


That will be me.

That will be me. Smiling

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Let me know

I have been wondering about this myself. My mom has a HELOC and I wanted t o utilize it to help buy properties but I did not want to try this method if I was wrong.

__________________

Anita
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TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Australian mortgage

Well, I've been reading about this online. Sounds like the Australians have a whole different system set up for even dealing with mortgages than the U.S., but what we are talking about here is basically what Mark described.

One company, United First Financial, has a "money merge account system" in which a person uses their accounts to work together to pay off their mortgage early. I will use a similar approach.
I talked to my banker and it sounds like there is no penalty for making as many "payments" as I want on our HELOC, and I actually received a checkbook for utilizing the line of credit. I can also transfer $ between accounts by phone or online. So, I'm going to deposit all of our checks into the account, and basically pay bills from there. I think this will achieve the same result as if I set up an "Australian mortgage". I probably won't try to calculate my actual "savings" each month, but, logically, it should pay off in the long run.

Thanks for the idea!

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


Great update

I checked with my mothers bank as well and got same info but I was thrilled to know that I could deduct a portion of it on her taxes as well. Good luck Rina and I am right behind you.

__________________

Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny

"FAILURE IS NOT AN OPTION"


Good job.

I suppose the bank would still send out a tax statement at the end of the year showing how much you paid in interest and you can claim it. It is, after all, a mortgage against your home. Was there something else, too, that you found you could claim? We'll keep each other posted , OK?

Rina

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


google it

go to google and type in live mortgage free. A whole bunch will come up that will explain it all.

D

__________________

Don't Wish the Past, Create the Future! - DH


Very interesting.

Thanks, D!!

__________________

"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)

"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11

For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249


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