From: "Mortxp" 
Newsgroups: misc.invest.real-estate
Subject: 97% Of American Homeowners Overpay !!
Date: 28 Aug 2006 17:46:21 -0700
   posting-account=ADtnoA0AAACqI_WEVsbXFXW72AiPNOc9


97% Of American Homeowners Overpay Their Lender In Mortgage Interest
Every Month.
If you own a home, have just re-financed or are shopping for a
mortgage, you'll be outraged.
Housing: Americans across the country were shocked to hear of a new
poll that states 97% of homeowners here in America are overpaying
millions of dollars each month in mortgage interest.
The National poll was conducted last month to determine how many
homeowners take advantage of the prepayment loophole in our mortgage
system, which eliminates costly interest overpayments.
The shocking results showed only 3% of America's homeowner population
utilize this loophole and take advantage of the valuable benefits
created by it.
When Sean Drover, a Chicago businessman and homeowner found out he was
overpaying $217 in mortgage interest every month, he was appalled.
"Honestly, I was sick to my stomach when I thought back on all the
monthly payments I'd made. If I would have known about the
pre-payment loophole when I first bought my home I could have put all
that money into equity instead of my lenders pocket."
The problem lies with what the banking industry calls "front
loading". This is when the majority of a homeowner's payment is
applied towards the interest on the loan instead of the original amount
borrowed.
The disturbing fact about front loading is it ensures you'll pay over
three times the original amount borrowed. Thus, resulting in enormous
profits coming straight out of your pocket and directly into your
lenders.
... Most people (97%) never stop and take a good look at how damaging
the system really is. Unfortunately, it's just the way conventional
mortgages are structured here in America.
Average Homeowner overpays $60,000
In fact, the average homeowner in America is overpaying $2000 in
mortgage interest every year, or $60,000 over the life of the mortgage.
"That's an enormous amount of money". Says top mortgage analyst,
Craig Romero. "This is money that homeowners are needlessly giving
away each year. Imagine what a person could do with an extra $60,000.
While gaining back thousands of dollars from these overpayments is a
huge benefit, it's not the only one. Cutting up to 10 years from the
term of a traditional mortgage is also another major advantage.
"I've been using the prepayment loophole for years". Says Denver
homeowner, Curtis Landau. "I've actually been able to remodel my
home and pocket about $25,000...all from the equity that was built so
quickly."
Americans must understand this prepayment loophole isn't something
lenders are eager to share with their customers. If they did, they
would risk taking a huge cut in profits.
With over 50 million mortgages in force, it's estimated Americans
overpay their lenders in excess of $12 billion every year. It's no
wonder this loophole is kept secret...lenders are undoubtedly getting
rich off these interest overpayments.

Written by Craig Romero

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