Mortgage Killer Accelerator

Strategy 14 of 107

Rewards on the mortgage payment (small, and only without fees)

Depends on people or program rulesFrom new cash flow, not your paycheck

What it is

Some programs pay points on a mortgage paid by debit card or through their app.

Steps

  1. Some programs pay points on a mortgage paid by debit card or through their app.
  2. Redeem the rewards as cash to principal.
  3. Paying a mortgage by credit card through a third party usually costs a fee that is larger than the reward. Skip it unless the math is positive.

Repeat: Every monthly payment.

Measure: Reward value after fees, sent to principal.

Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Fees can exceed rewards.
  • Carrying a card balance costs far more than the mortgage.

Who it fits

Average household, Higher earners, Higher net worth, with assets, Business owners, Newlyweds, Married couples, College students, Single, Grandmas and grandpas (62 and over), No high school diploma, No college degree

Needs

Any homeowner with a mortgage.

How predictable

Depends on people or program rules (tenants, family, IRS records, lenders)

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (average household). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: some programs pay points on a mortgage paid by debit card or through their app.

Suppose it brings $600 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 16 years 3 months instead of 30 years, saving about $196,219 in interest. To finish in five years, they would still need about $3,374 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sources and more information

Where to get help

Related strategies

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