Solved

Australian Method of paying off a mortgage

Posted on 2014-12-15
6
481 Views
Last Modified: 2014-12-27
Hello,

Does anyone have any information about the Australian Method of paying off a mortgage?  What software is required?  I'm assuming that this "software" would be coming from the financial institution, but I'm a bit unclear about how to go about this.  I'd like to payoff my mortgage ASAP, but wanted to know if anyone has had any experience with this and the pros/cons about this mortgage solution?
0
Comment
Question by:uppercut7141
[X]
Welcome to Experts Exchange

Add your voice to the tech community where 5M+ people just like you are talking about what matters.

  • Help others & share knowledge
  • Earn cash & points
  • Learn & ask questions
  • 4
6 Comments
 
LVL 27

Expert Comment

by:d-glitch
ID: 40500584
There is some general information here on paying off your mortgage faster:
     http://en.wikipedia.org/wiki/Mortgage_acceleration

In particular, the article notes that the Australian Method has been outlawed in Australia.
0
 
LVL 27

Expert Comment

by:d-glitch
ID: 40500751
Your really don't need any software or program to pay off your mortgage faster.
You can set your monthly payment higher than the required amount.
You can make extra, one-time, periodic, or occasional payments as y our cash flow allows.

A simple mortgage calculator in Excel is all you need to look at various scenarios.
0
 

Author Comment

by:uppercut7141
ID: 40500776
Do you have an link I can try to do this?
0
Technology Partners: We Want Your Opinion!

We value your feedback.

Take our survey and automatically be enter to win anyone of the following:
Yeti Cooler, Amazon eGift Card, and Movie eGift Card!

 
LVL 27

Expert Comment

by:d-glitch
ID: 40500792
Here is one    http://www.skipton.co.uk/mortgages/mortgage-calculators/flexible-payments-calculator

I also have an Excel spreadsheet somewhere.  I will try to find it.
0
 
LVL 27

Expert Comment

by:d-glitch
ID: 40500815
I found it.  If you let me know the interest rate and the term, I will set it up.

It can calculate the standard payoff say for $100K, then you can what higher monthly and/or occasional payments do for you.
0
 
LVL 16

Accepted Solution

by:
dhsindy earned 500 total points
ID: 40502196
This merged account method can be risky if you are not disciplined and understand cash flow.  That is why it is prohibited in many places.  The first thing you should do is find out if it is legal where the property is located.

This type of account basically operates like a secured credit card similar to what most people call a second mortgage.  You have a large balance secured by the property and the interest on the balance is calculated daily (rather than monthly like a first mortgage).  Your bill payments or deposits adjust the running balance when they are made.  So, if you pay your bills as late as possible (keeping the balance lower) and make your deposits as early as possible (keeping the balance lower)  your money works better and saves you on the daily interest calculation .  But, if you're not disciplined or over spend it can end up costing you more as your balance will go up instead of down.
0

Featured Post

PeopleSoft Has Never Been Easier

PeopleSoft Adoption Made Smooth & Simple!

On-The-Job Training Is made Intuitive & Easy With WalkMe's On-Screen Guidance Tool.  Claim Your Free WalkMe Account Now

Question has a verified solution.

If you are experiencing a similar issue, please ask a related question

We are taking giant steps in technological advances in the field of wireless telephony. At just 10 years since the advent of smartphones, it is crucial to examine the benefits and disadvantages that have been report to us.
It’s an age old story, whether you’re looking for full-time employment or contract work. In order to land a job, you must have experience.
This is a video describing the growing solar energy use in Utah. This is a topic that greatly interests me and so I decided to produce a video about it.
Although Jacob Bernoulli (1654-1705) has been credited as the creator of "Binomial Distribution Table", Gottfried Leibniz (1646-1716) did his dissertation on the subject in 1666; Leibniz you may recall is the co-inventor of "Calculus" and beat Isaac…

726 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question