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  1. 1. DO YOU OWN YOUR HOME OR DOES YOUR LENDER?
  2. 2. FOR MOST OF US, THE MORTGAGE IS THELARGEST DEBT WE WILL EVER HAVE!
  3. 3. On average ourclients learn to:Pay offtheir 30 year loansin 8-14 years! Without makingHigher Monthly
  4. 4. No Mortgage Payment? What could you do?
  5. 5. MORT GAGEPledge Until Death!mortgage (mgij) n. [[ OFr mort, dead+ gage, pledge]] 1 to pledge (property) by a mortgage 2 to put an advance claim on / to mortgage ones future/
  6. 6. The Cost of a $200,000 Mortgage @ 6% (Is It or Isnt It 6% ?)YearTotal Paid Principal Interest Balance114,389 2,45611,933 197,543228,778 5,03623,714 194,93610143,89232,628111,263167,37120287,78491,992195,791108,00730431,677200,000 231,677 0
  7. 7. Compare the Options Total PrincipalPrincipal$200,00& Interest & 0 RepayFortnightlyInterestMonthlyYEARS TO BE DEBT 12 YEARS 25 YEARS30 YEARS FREE$97,637 $184,367$231,677 INTEREST PAID
  8. 8. YOU HAVE CHOICES!!REGULAR CHEQUE ACCOUNTWe PayDeposit Income ForMortgages ChequesHousehold Service FeesCheque Acct Living Expenses Money ordersEarns Travelers cheques Bounced chequesCredit Cards, etc.0% InterestMiscellaneousINTEREST ONLY2 ND MORTGAGE Deposit Income/ Benefits Make PaymentMortgages Simple Interest Income Interest Only Lowers Living Expenses Pre-Approved LimitBalance Credit Cards, etc. Purchasing PowerSaves $$(interest)Miscellaneous
  9. 9. John & Jane
  10. 10. Whats In A Home?Value $400,0001st Mortgage$200,000Payment/Month$1,200Principal/Month $200
  11. 11. Fixed 1 Mortgage st1st Year Balance$200,000Yearly Principal$2,500$197,500Sub Total
  12. 12. Example: Consumer DebtDebts That Could Be ConsolidatedLoans (car, etc.) Amt.$20,000Pymt. $750Cards, etc.Amt. $30,000Pymt. $500$50,000 Pay Off Total $1,250-$250Line of Credit $50,000 $1,000 6%Payment $250InterestOnly 2nd Mortgage Bal.$50,000
  13. 13. Income & Expenses Income$5,000 Expenses$4,000 Left Over $1,000
  14. 14. LINE OF CREDIT AS THE CHEQUE ACCOUNTStart Balance $50,000Payment / Income -5,000Balance 45,000E +4,000Balance Month One 49,000Surplus 1st mo.$1,000 Payment / Income -5,000Balance 44,000Surplus 2 mo. nd$1,000Expenses+4,000 12 Month $12,000Balance Month Two 48,0002nd Balance $38,000
  15. 15. Reducing the 1st Mortgage1st Year Bal. $200,000Yearly Prin. $2,500Sub Total $197,500From 2nd Mort$12,000 From the LOCTotal Year 1$185,500Yearly Prin.Sub TotalFrom 2nd MortTotal Year 2
  16. 16. Amortization ScheduleAmortization Schedule For: John and JaneProperty Address:1324 Owe D Bank WayLoan Programme:Loan Amount$200,000Interest Rate 6%Term 360 Months
  17. 17. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNo RatePaymentPrincipal InterestBalance16.01,199.10199.101,000.00 199,800.9026.01,199.10200.10999.00 199,600.8036.01,199.10201.10998.00 199,399.7046.01.199.10202.10997.00 199,197.6056.01,199.10203.11995.99 198,994.4966.01,199.10204.13994.97 198,790.3676.01,199.10205.15993.95 198,585.2186.01,199.10206.17992.93 198,379.0496.01,199.10207.20991.90 198,171.8410 6.01,199.10208.24990.86 197,963.6011 6.01,199.10209.28989.82 197,754.3212 6.01,199.10210.33988.77 197,543.9914,389.20 2,456.01 11,933.1913 6.01,199.10211.38987.72 197,332.6114 6.01,199.10212.44986.66 197,120.1715 6.01,199.10213.50985.60 196,906.6716 6.01,199.10214.57984.53 196,692.1017 6.01,199.10215.64983.46 196,476.4618 6.01,199.10216.72982.38 196,259.7419 6.01,199.10217.80981.30 196,041.9420 6.01,199.10218.89980.21 195,823.0521 6.01,199.10219.98979.12 195,603.0722 6.01,199.10221.08978.02 195,381.9923 6.01,199.10222.19976.91 195,159.8024 6.01,199.10223.30975.80 194,936.5014,389.20 2,607.49 11,781.71
  18. 18. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNo RatePaymentPrincipal InterestBalance25 6.01,199.10224.42974.68 194,712.0826 6.01,199.10225.54973.56 194,486.5427 6.01,199.10226.67972.43 194,259.8728 6.01.199.10227.80971.30 194,032.0729 6.01,199.10228.94970.16 193,803.1330 6.01,199.10230.08969.02 193,573.0531 6.01,199.10231.23967.87 193,341.8232 6.01,199.10232.39966.71 193,109.4333 6.01,199.10233.55965.55 192,875.8834 6.01,199.10234.72964.38 192,641.1635 6.01,199.10235.89963.21 192,405.2736 6.01,199.10237.07962.03 192,168.2014,389.20 2,768.30 11,620.9037 6.01,199.10238.26960.84 191,929.9438 6.01,199.10239.45959.65 191,690.4939 6.01,199.10240.65958.45 191,449.8440 6.01,199.10241.85957.25 191,207.9941 6.01,199.10243.06956.04 190,964.9342 6.01,199.10244.28954.82 190,720.6543 6.01,199.10245.50953.60 190,475.1544 6.01,199.10246.72952.38 190,228.4345 6.01,199.10247.96951.14 189,980.4746 6.01,199.10249.20949.90 189,731.2747 6.01,199.10250.44948.66 189,480.8348 6.01,199.10251.70947.40 189,229.13 14,389.20 2,939.07 11,450.13
  19. 19. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNo RatePaymentPrincipal InterestBalance49 6.01,199.10252.95946.15 188,976.1850 6.01,199.10254.22944.88 188,721.9651 6.01,199.10255.49943.61 188,466.4752 6.01.199.10256.77942.33 188,209.7053 6.01,199.10258.05941.05 187,951.6554 6.01,199.10259.34939.76 187,692.3155 6.01,199.10260.64938.46 187,431.6756 6.01,199.10261.94937.16 187,169.7357 6.01,199.10263.25935.85 186,906.4858 6.01,199.10264.57934.53 186,641.9159 6.01,199.10265.89933.21 186,376.0260 6.01,199.10267.22931.88 186,108.80 14,389.203,120.33 11,268.8761 6.01,199.10268.56930.54 185,840.2462 6.01,199.10269.90929.20185,570.3463 6.01,199.10271.25927.85 185,299.0964 6.01,199.10272.60926.50 185,026.4965 6.01,199.10273.97925.13 184,752.5266 6.01,199.10275.34923.76 184,477.1867 6.01,199.10276.71922.39 184,200.4768 6.01,199.10278.10921.00 183,922.3769 6.01,199.10279.49919.61 183,642.8870 6.01,199.10280.89918.21 183,361.9971 6.01,199.10282.29916.81 183,079.7072 6.01,199.10283.70915.40 182,796.00 14,389.203,312.80 11,076.40
  20. 20. REDUCING THE 1st MORTGAGE1st Year Bal. $200,000Yearly Prin. $2,500Sub Total $197,500From 2nd Mort $12,000$ $12,000 From 2nd MortgageTotal Year 1$185,500Yearly Prin. $3,500 $47,979INTERESTSub Total $182,000SAVINGFrom 2nd MortTotal Year 2$170,000
  21. 21. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNo RatePaymentPrincipal InterestBalance49 6.01,199.10252.95946.15 188,976.1850 6.01,199.10254.22944.88 188,721.9651 6.01,199.10255.49943.61 188,466.4752 6.01.199.10256.77942.33 188,209.7053 6.01,199.10258.05941.05 187,951.6554 6.01,199.10259.34939.76 187,692.3155 6.01,199.10260.64938.46 187,431.6756 6.01,199.10261.94937.16 187,169.7357 6.01,199.10263.25935.85 186,906.4858 6.01,199.10264.57934.53 186,641.9159 6.01,199.10265.89933.21 186,376.0260 6.01,199.10267.22931.88 186,108.80 14,389.203,120.33 11,268.8761 6.01,199.10268.56930.54 185,840.2462 6.01,199.10269.90929.20 185,570.3463 6.01,199.10271.25927.85 185,299.0964 6.01,199.10272.60926.50 185,026.4965 6.01,199.10273.97925.13 184,752.5266 6.01,199.10275.34923.76 184,477.1867 6.01,199.10276.71922.39 184,200.4768 6.01,199.10278.10921.00 183,922.3769 6.01,199.10279.49919.61 183,642.8870 6.01,199.10280.89918.21 183,361.9971 6.01,199.10282.29916.81 183,079.7072 6.01,199.10283.70915.40 182,796.00 14,389.203,312.80 11,076.40
  22. 22. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNo RatePaymentPrincipal InterestBalance73 6.01,199.10285.12913.98 182,510.8874 6.01,199.10286.55912.55 182,224.3375 6.01,199.10287.98911.12 181,936.3576 6.01.199.10289.42909.68 181,646.9377 6.01,199.10290.87908.23 181,356.0678 6.01,199.10292.32906.78 181,063.7479 6.01,199.10293.78905.32 180,769.9680 6.01,199.10295.25903.85 180,474.7181 6.01,199.10296.73902.37 180,177.9882 6.01,199.10298.21900.89 179,879.7783 6.01,199.10299.70899.40 179,580.0784 6.01,199.10301.20897.90 179,278.87 14,389.203,517.1310,872.0785 6.01,199.10302.71896.39 178,976.1686 6.01,199.10304.22894.88 178,671.9487 6.01,199.10305.74893.36 178,366.2088 6.01,199.10307.27891.83 178,058.9389 6.01,199.10308.81890.29 177,750.1290 6.01,199.10310.35888.75 177,439.7791 6.01,199.10311.90887.20 177,127.8792 6.01,199.10313.46885.64 176,814.4193 6.01,199.10315.03884.07 176,499.3894 6.01,199.10316.60882.50 176,182.7895 6.01,199.10318.19880.91 175,864.5996 6.01,199.10319.78879.32 175,544.8114,389.20 3,734.06 10,655.14
  23. 23. Interest - - - - - - - - - - - - - - - - Monthly Payment- - - - - - - - - - - - - - - - - RemainingNoRatePaymentPrincipal InterestBalance976.01,199.10321.38877.72 175,223.43986.01,199.10322.98876.12 174,900.45996.01,199.10324.60874.50 174,575.85100 6.01.199.10326.22872.88 174,249.63101 6.01,199.10327.85871.25 173,921.78102 6.01,199.10329.49869.61 173,592.29103 6.01,199.10331.14867.96 173,261.15104 6.01,199.10332.79866.31 172,928.36105 6.01,199.10334.46864.64 172,593.90106 6.01,199.10336.13862.97 172,257.77107 6.01,199.10337.81861.29 171,919.96108 6.01,199.10339.50859.60 171,580.4614,389.203,964.3510,424.85109 6.01,199.10341.20857.90 171,239.26110 6.01,199.10342.90856.20 170,896.36111 6.01,199.10344.62854.48 170,551.74112 6.01,199.10346.34852.76170,205.40113 6.01,199.10348.07851.03 169,857.33114 6.01,199.10349.81849.29 169,507.52115 6.01,199.10351.56847.54 169,155.96116 6.01,199.10353.32845.78 168,802.64117 6.01,199.10355.09844.01 168,447.55118 6.01,199.10356.86842.24 168,090.69119 6.01,199.10358.65840.45 167,732.04120 6.01,199.10360.44838.66 167,371.6014,389.204,208.8610,180.34
  24. 24. REDUCING THE 1st MORTGAGE1st Year Bal. $200,000Yearly Prin. $Sub Total $197,500From 2nd Mort $12,000$12,000 From 2nd MortgageInterest SavingsTotal Year 1$185,500 $47,979From AmortizationYearly Prin. $3,500Sub Total $182,000 $32,825Savings 2nd YearFrom 2nd Mort $12,000Total Year 2$170,000 $80,804
  25. 25. THESOLUTION We evaluate clients total consumer debt We calculate the exact split foryour 1st Mortgage and Line ofCredit to maximise savings.Use your LOC like your current household cheque account to Should your loans avoidrestructuring, we are your interest and simplify need finances.always there to assist.
  26. 26. Many companies will give you a mortgage . We show you how to get out of one!