Raul Campos, Mortgage Acceleration - Northstar Investment PropertiesSo you have a 30 year mortgage. Congratulations! Now homeowners across the country have the ability to pay off their mortgages within a seven – ten year period. You read that right. That’s the message that Real Estate Investor Raul Campos, continues to emphasize to new students who are entering into this industry of real estate investing. The one thing that homeowners mistakenly do is refinance after three – five years and it starts the mortgage all over again. STOP IT!

Raul Campos’ financial success started in financial services where he became very successful and realized there is even more success and ability to build generational wealth in real estate, where the investor has more control over the asset compared to a stock or mutual fund for example. He has been involved in fixing-and-flipping homes, purchasing rentals, and even in commercial real estate. These strategies are all taught through a new and unique program like no other. He is also a highly visible and high-in-demand public speaker. So to the reason you’re reading this article – One of the 50 courses taught involves paying off a mortgage utilizing a mortgage acceleration strategy, and when done correctly, you are able to pay off a 30 year mortgage within a seven – ten year period. We purchased our personal home in July of 2015 and are on track to have it paid off within 7 years using the education and the mortgage acceleration strategy.

“I’m finding that most people don’t know the difference between amortized and simple interest,” said Campos.  “This makes all the difference in whether a homeowner will pay off their loan in 30-years or in seven-years or less.”

Campos recently spoke to us in Scottsdale, AZ. and outlined strategies to ensure homeowners are keeping their money rather than giving it to banks.  “People don’t realize that an 18%-21% simple interest line of credit is significantly better than a 30-year amortized loan at 3.5%.  In reality, a homeowner will pay back their original principal amount and between 80%-150% more of the original amount borrowed just in interest alone during the life of an amortized loan.  That’s  if they don’t make the big mistake of being lured into refinancing in which case they’ll pay back even more in interest and never put a dent on the original principal amount.”

All of this information is revealed on the bank’s Truth and Lending statement.  “However  financial institutions don’t go out of their way to tell homeowners the total damage, and in fact, try to hide it.  Lenders have a vested interest in keeping borrowers on this amortized merry go-round instead of helping them pay off their loan.  That’s how banks make money.”

Campos stresses that one technique that he teaches known as, chunking, is so critical to getting off the amortized merry go-round.  Utilizing this technique allows homeowners to begin placing interest in their own pockets to grow their own wealth rather than lining the pockets of banks. This is NOT the splitting a payment in two each month or simply making an extra payment here or there to principal. Those will work and are cute, but won’t get you paid off anywhere near in seven years.  He says homeowners can establish multiple lines of credit and access significant amounts of money to chunk down their mortgages on their personal property, investment properties, student loans or any debt.  It requires no extra money out of pocket or extra annual income.  In fact, most borrowers will see a rise in their monthly cash flow.

“Just one chunking payment can instantly reduce up to $45,000 in interest alone and knock off five years of payments off the life of a typical 30-year mortgage.  But the perceived hardship or challenge for American borrowers is raising or accessing money to put “chunking” into action.  This is one of the many strategies that we teach to our students and partners and why our students are getting out of debt while working their “day job” and building multi-million dollar real estate portfolios. It takes no extra money out of your pocket and no extra income.”

We are so fortunate to have Raul Campos as one of our investing partners and mentors. If you want to learn more, then contact us.

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