SANTA CRUZ (May 18, 2008) - Pay off your mortgage in up to half the time without changing your spending habits by putting the cash in your checking and savings accounts to work for you. This loan program combines a checking account with a home equity line of credit type of a mortgage to maximize the use of those monies. It is called the Home Ownership Accelerator (HOA). While it is has only been available in the United States for a few years, it has been a very popular loan in Australia for many years.

We all have idle cash parked in our checking accounts and in low interest - bearing savings accounts. We keep it there so it is ready when we need it. We use the money to pay bills and we accumulate and store it in case an extraordinary expense comes up. This loan program changes all of that and at the same time it pays off your loan appreciably faster without changing your spending habits!

Here is how it works. When you deposit your pay check into your checking account, the money is immediately used to reduce your mortgage balance. That means that the mortgage interest that you owe goes down immediately. Your mortgage interest is calculated on a daily basis and is based on your interest rate and the current size of your mortgage.

When you need some of that money back in order, say, to pay your monthly bills, you simply write a check. Your mortgage balance then goes up to cover the check. This loan is best for homeowners who make more money than they spend each month and over time, this differential makes a significant difference in the remaining term of your mortgage.

As we all know, you can pay off your mortgage faster and save tens of thousands of dollars by simply increasing your payment each month with a conventional mortgage. However, that requires discipline and a tightening of your personal budget. Even more importantly, once you have made extra payments into your mortgage, your money is locked up permanently unless you refinance.

This innovative product may be the only loan that you will ever need for your home and here’s how it works. It takes the place of a first mortgage and a Home Equity Line of Credit and must be in first position which means that if you are refinancing you will use it to pay off any existing mortgages that you now have. If you are using the HOA to buy a home it will effectively become both your mortgage and a Line of Credit.

The HOA is for those borrowers who are able to save money each month, who have good credit and solid income. It is ideal for self employed borrowers, investors and high income earners; it can also be used as a reverse mortgage.

The  Home Ownership Accelerator is based on an adjustable index but when compared with a traditional 30 year fixed rate, the savings in interest will amount to tens of thousands of dollars! To find out more, contact a mortgage professional who has been certified to provide the HOA financing or go to www.homeownershipaccelerator.net and find out for yourself.

This column is written every Sunday by Peter Boutell, Certified Mortgage Planner and a principal at Santa Cruz Home Finance. You may reach him at (831) 425-1250 of email him at Peter@SantaCruzHomeFinance.com.