How TheBloomStrategy can help pay down a mortgage

Paying down a mortgage is one of the goals that millions of homeowners struggle with on a daily basis. No matter how many payments they seem to make on their mortgages, it feels like they just aren’t making any significant progress. Low interest rates have been a curse for the average household because, statistically speaking, they’ve caused people to borrow more money than they can really afford. As a result, debt levels across the board are on the rise, particularly in Western Canada.

What’s more than that, those low interest rates normally don’t stay that low forever. Low interest rates are commonly used as a way to grow the economy and typically rise over time, which could put significant pressure on a person’s cash flow. If you find yourself in this common situation, it’s important to understand that you aren’t without options. TheBloomStrategy can actually help you start paying down a mortgage today in a way that is shockingly simple and straightforward.

The smart solution to this problem involves paying yourself first through saving. The way to do this is not by saving through traditional means, mind you, but through something much better: participating whole life insurance. By allocating a certain portion of your income into whole life insurance, you are essentially creating a channel through which you can borrow from yourself over time instead of borrowing from other lenders. With the typical mortgage, overtime hundreds of thousands of dollars is paid in interest to a third party financial institution. TheBloomStrategy can help you recapture much of this interest by helping you pay off your mortgage quicker.

How TheBloomStrategy can help you pay down your mortgage is an idea that is actually closely tied in with the Infinite Banking Concept. Simply put, the idea is that you should essentially pay yourself to be your own banker and limit the amount of interest being paid to third party financing institutions. In the early years, typical mortgages with long amortization schedules have high interest costs with very little of your payment being applied to the principle outstanding. By borrowing from your participating whole life policy, you can use the capital to make prepayments onto your mortgage which can significantly reduce the time it takes to pay off your mortgage. With every lump sumpayment, more and more of your future mortgage payments will be going towards the principle. The next step is to set-up the repayment of your policy loan on your own terms. Yes you do pay the insurance company interest but they in turn pay you a dividend which puts the financing arrangement in your favor. Once this loan is paid off you can borrow the funds again to make another mortgage prepayment.