Home Free Loan Comparisons

Home Free has no competition when compared to how traditional mortgages work. Home Free is the only choice for savvy consumers looking to build their future. Since an individual does not have to change their current spending habits, Home Free has no equal.

How Banks "Hook" Consumers on Rate

Remember, banks want their clients to be rate focused. Every time you refinance, that is another 30 years of guaranteed earnings to the bank. Consumers are lured into an introductory "low" rate or "low" monthly payment. Even the allure of a "low" 30 year fixed sounds great on the surface. But who wants to pay for a mortgage for 30 years when you don't have to? And who wants to pay more closing costs or the so-called "no-cost loan" where the costs are baked into your loan?

Which is the better choice: 6.25% on $160,000 for 30 years or 6.6% on $160,000 for 12 years? There is over $119,000 in added interest on the lower rate, so-called, safe 30 year fixed loan. With Home Free you have completely paid off your mortgage freeing-up critical cash flow for 18 years to use for living, investing and retiring!

Compare the "Effective Rate", there is no Comparison

What is "Effective Rate"? That is the real rate of interest you pay on the money that you borrow. Even with a higher Home Free interest rate as in the example above, your Real Rate "Effective Rate" on a 30 Year Fixed would have to equal 2.96% to Equal the Home Free program. (We use a higher rate for illustration only to show the true impact of this program).

You Don't Have to Make that Extra Payment to Reduce Your Payoff

The "Experts" have been telling consumers for years to make one extra payment per year on their mortgage. It does pay-off a traditional mortgage in 25 years. It does save $41,202 in interest in the chart above. The drawbacks are that it is not liquid, once you've paid it, it's locked into your mortgage; it does not lower your loan balance when you pay it (because interest is front-loaded).

With Home Free every payment lowers the principal balance every month and your equity is there when you need it. There are numerous strategies that allow you to reduce your pay-off even sooner (Remember, you are in control, not the bank). Shift a money-market account into your bank account. It automatically lowers your principal the next month, reducing your interest payment and applying more of your payment to principal reduction. There is a whole section on strategies which makes this loan the powerful tool that it is