Take a $100,000 standard Mortgage over Twenty Five years. Over the term, accepting that the average Interest rate over the time will be about 9%, the Interest alone will be about $150,000.
In the first year, repayment of the pricipal is usually only about $1,000. and the Interest paid is about $9,000. It's not such a big deal when you consider you're now in your own home and you usually accept that "that's just the way it is". But by year 5, things start to change.
In the 5th year, the amount paid of the principal will be about $6,800 whislt the Interest paid is around $36,320. Leaving a balance of $93,150. It's not so pleasant now. The banks have taken their toll and you seem no closer to really owning your home.
It's even worse after 12 years.
After 12 years the amount paid of the principal will have grown to about $23,250. But the Interest paid will also have grown to around $101,000 Leaving you a balance of around $79,700. After 25 Years, The principal paid is of course $100,000. The price of your home all those years ago. But you will have paid the Bank or other lender the princely sum of about $159,700. Now that's scary.
Here's the real rub though. Most people refinance their Mortgage after between 5 and 9 years. Even if they don't increase the amount they borrow, usually to by liabilities and not assets, they find themselves back at year one again. Paying about $8,000 in pure Interest and maybe $1,500 in principal. It then takes a grand total of between 30 and 40 years to pay of the home you originally purchased for $100,000. Very Very Expensive wouldn'y you agree?
Now, take the same $100,000 Mortgage restructures through The Geyer Group. In the First year, nothing much canges. You still pay Too much in Interest, but that's OK because...
"It's not where you start that matters, it's where you finish that counts!".
In Five years with a Mortgage restructured through The Geyer Group, the Interest paid is about $43,800 and the Loan Balance is $56,900 A saving in 5 hears of about $36,250. In fact through The Geyer Group, a $100,000 Mortgage can be paid of completely winthin 10 Years. This is a saving in Interest of about $85,000 and a reduction in time of about 15 Years.
