A New Twist on an Old Problem - Mortgage and Debt Reduction!

There are actually plenty of ways you can work to reduce your mortgage debt.

Most people suggest that you make biweekly payments rather than monthly payments, but there's a new trend called mortgage cycling that is rapidly gaining popularity.

Some people have successfully used mortgage cycling to gain almost $50,000 in equity in just three years! A $150,000 mortgage could be paid off in 10 years. That's a BIG debt reduction!

If you're serious about reducing your debt, you can whittle it down substantially quite quickly. With techniques like mortgage cycling and cutting down unnecessary expenses, you may find yourself debt free in no time!

For most people, paying off a 30-year mortgage in just 10 years sounds like an impossible pipe dream. But to those who know about mortgage cycling, it's a thrilling reality!

Mortgage cycling really does work, and it really can help you pay off your mortgage in as little as 10 years. The way mortgage cycling works is by paying one large lump sum payment directly toward the principal every few months.

Typically that amount ranges from a few hundred to a few thousand dollars. Most people don't have this kind of money available, so it often requires using a revolving line of credit to make these lump sum payments toward the principal.

These loans may require large fees to be paid up front or have high closing costs, and some may even have annual fees that you should take into consideration. Another way people take care of these large lump sums is by using their income tax rebate checks.

For some families, these checks can be in the hundreds or thousands of dollars, and they are great for making your lump sum payments. But mortgage cycling really depends on these home equity lines of credit to pay the lump sum payments.

Unless you have access to regular lump sums every few months, it may be difficult to sustain the system. Using a home equity line of credit can be risky if you don't know what you're doing, because you're actually putting the equity you already have in your home on the line as collateral.

I also recommend getting this book Mortgage Ripoffs and Money Savers: An Industry Insider Explains How to Save Thousands on Your Mortgage or Re-Finance

And if you're interested in finding out more about how mortgage cycling could save you money and eliminate your mortgage, or if you want to learn whether it might be right for you, then you should read up carefully on the subject. It can be risky taking on additional debt to cover the costs, so you should know what you're doing before you jump into it.

Everyone would like to increase the equity they have in their home. The trouble is, mortgages are design to keep you paying for as long as possible so the lender can continue to collect interest for as long as possible.

For this reason, they won't tell you that you can pay it off sooner and save thousands of dollars. Of course lenders want you to take 30 years to pay off your mortgage, because it means a lot more money for them in the long run.

It doesn't make sense for lenders to tell you how you can pay your mortgage off faster, because then they might lose 20 years work of interest payments. That could be tens of thousands of dollars or more!

Building more equity means paying your mortgage off faster. That means huge savings for you over the life of your mortgage. But how can you build more equity in your home when such a huge chunk of your monthly mortgage payment is going toward the interest rather than the principal?

The answer lies in a system called mortgage cycling. The system focuses on paying extra money toward the principal in one large sum on a regular basis, usually every few months.

What this does is, it whittles down the overall amount you actually owe, which in turn saves you a lot of money on interest. You have to pay interest every time you make a payment, and if you make fewer payments, you pay less in interest.

Not everyone has the money it takes to make large lump sums, so they must depend on this like home equity loans to make these payments. That brings another loan into the equation, but since you can build up equity fast, it's usually worth it. The home equity loans are also generally paid off faster than a mortgage, which still saves you money in interest.