TRUE & FALSE PARTIAL PREPAYMENT?

Do you know UNKNOWINGLY The TRUE & FALSE PARTIAL PREPAYMENT Could End Up Throwing Away Thousands of Extra Dollars in Interests to Your Mortgage Lender!

From: David Wong

Dear Property Owner and Loan Borrower,

Have you ever made a Partial Prepyment for your mortgage with your EPF?

Have you ever made a Partial Prepyment for your mortgage with your Fixed Deposit?

Have you ever made a Partial Prepyment for your mortgage with your Cash Deposit?

Have you ever made a Partial Prepyment for you mortgage with your Annual Bonus?

If you say “YES” to any one of these questions, then please read on because you might have Thrown Away Thousands of Extra Dollars in Interests to Your Mortgage Lender due to UNKNOWINGLY The TRUE & FALSE PARTIAL PREPAYMENT.

WHY is it so? Firstly, let me borrow a Normal Loan Type Personalized Amortization Schedule to expose some facts your lender does not want you to know.

If YOU have a $250,000 Mortgage amortized for 30 Years with an Interest Rate of 6.00%，Monthly Compounding and the Monthly Payments are $1,498.88. Do you know that...
AFTER PAYING 15 YEARS, you will STILL OWE 71% of the $250,000 you borrowed？
AFTER PAYING 25 YEARS, you will STILL OWE 50% of the $250,000 you borrowed？
You will PAY OVER 2.16 the $250,000 you originally borrowed before paying off your mortgage?

Table 1: A Normal Loan Type Personalized Amortization Schedule


Table 1 indicates that if you do not make a Partial Prepyment Mortgage Reduction Strategy for your mortgage, then you are required to PAY at least $289,593.09 Mortgage Interest to your lender!

If you wish to save Mortgage Interest, you could carry out a Partial Prepyment Mortgage Reduction Strategy for your mortgage.

However, if you do not know what is the TRUE & FALSE PARTIAL PREPAYMENT, you could end up Throwing Away Thousands of Extra Dollars , in Interests to Your Mortgage Lender.

I. TRUE PARTIAL PREPAYMENT

Ok, let us look at the TRUE PARTIAL PREPAYMENT. Table 2 shows that if you CORRECTLY carry out a $50,000 Partial Prepayment for your mortgage, you will DEFINITELY save $158,233.00（54.64%）Mortgage Interest and shorten 138（38.33%）months.

Table 2: TRUE Partial Prepayment Personalized Amortization Schedule


In summary, Table 2 indicates that unless you have the full knowledge of the TRUE PARTIAL PREPAYMENT and the ability to apply it, failing which you will definitely carry out a WRONG $50,000 Partial Prepayment Mortgage Reduction Strategy for your mortgage which will End Up Throwing Away Thousands of Extra Dollars in Interests to Your Mortgage Lender!

II. FALSE PARTIAL PREPAYMENT (1)

Now let us look at the FALSE PARTIAL PREPAYMENT! In fact, there are TWO types of FALSE PARTIAL PREPAYMENT and Table 3 illustrates the First type of FALSE PARTIAL PREPAYMENT.

Table 3 shows that if you WRONGLY carry out a $50,000 Partial Prepayment for this mortgage, you will ONLY save 57,916.05（20.00%).

Table 3: First Type of FALSE Partial Prepayment Personalized Amortization Schedule


In summary, Table 2 indicates that if you UNKNOWINGLY carry out a WRONG $50,000 Partial Prepayment Mortgage Reduction Strategy for this mortgage, you will DEFINITELY End Up Throwing Away $100,316.95 Mortgage Interests to Your Mortgage Lender!！

III. FALSE PARTIAL PREPAYMENT (2)

Ok, let us look at the Second type of the FALSE PARTIAL PREPAYMENT. Table 4 shows that if you 100% WRONGLY carry out a $50,000 Partial Prepayment for your mortgage, you will 100% UNABLE to save a single cent of Mortgage Interest.

Table 4: Second Type of FALSE Partial Prepayment Personalized Amortization Schedule


In summary, Table 3 above indicates that if you UNKNOWINGLY carry out a WRONG $50,000 Partial Prepayment Mortgage Reduction Strategy for your mortgage, you will DEFINITELY End Up Throwing Away $289,598.09 Mortgage Interests to Your Mortgage Lender！

IV: The TRUTH of TRUE & FALSE PARTIAL PREPAYMENT

WHY is it so? Just as what I have asked above.

Based on my 6 years of Mortgage Reduction Training and Consulting experiences, I discovered that most people have Thrown Away Thousands of Extra Dollars in Interests to Their Mortgage Lenders mainly due to UNKNOWINGLY what is The TRUE & FALSE PARTIAL PREPAYMENT.

Then, how can you PREVENT UNKNOWINGLY carry out a WRONG Partial Prepayment Mortgage Reduction Strategy for your mortgage?

Firstly，you must know how to IDENTIFY The TRUE & FALSE PARTIAL PREPAYMENT Mortgage Reduction Strategy. Table 5 shows the difference between the TRUE & FALSE PARTIAL PREPAYMENT Mortgage Reduction Strategy depends on the Repayment Method of your $50,000 PARTIAL PREPAYMENT.

If your lender allocates your $50,000 PARTIAL PREPAYMENT into "PRINCIPAL REDUCTION", Table 3 above hightlighted that you can only save some mortgage interest, even though your semi annual or annually bank statements show that your loan outstanding balance and mortgage interest has been reduced.

In addition, if your lender allocates your $50,000 PARTIAL PREPAYMENT into "ADVANCE PAYMENT", Table 4 above hightlighted that you are unable to save a singel cent of mortgage interest, even though your semi annually or annually bank statements show that your outstanding balance and mortgage interest has been reduced.

In summary, if you are unable to DIFFERENTIATE The TRUE & FALSE PARTIAL PREPAYMENT Could End Up Throwing Away Thousands of Extra Dollars in Interests to Your Mortgage Lender.

Table 5: The Difference Between The TRUE and FALSE Partial Prepayment


Secondly，you must know how to GENERATE FOUR (4) Personalized Amortization Schedules as mentioned above.

In summary, if you do not want to throw away Thousands of Extra Dollars in Interests to your Mortgage Lender due to UNKNOWINGLY The TRUE & FALSE PARTIAL PREPAYMENT, you must be able to generate FOUR (4) Personalized Schedules for each of your mortgage before you make any Partial Prepayment.

The problem now is, you are not an Actuary, how can you identify and generate FOUR (4) Personalized Schedules as mentioned above?

Good News! In order to assist you to prevent UNKNOWINGLY carry out a WRONG Partial Prepayment Mortgage Reduction Strategy for your mortgage and throw away Thousands of Extra Dollars in Interests to Your Mortgage Lender. Please contact our consultants for detail.