LZL Equity Programs Company helps homeowners save tens of thousands of dollars in interest payments and helps reduce the number of years homeowners pay on their mortgages. This program is sometimes called “bi-weekly mortgage”, “equity accelerator”, “equity builder”, or “equity enhancement”.
How does this program work?
Example
How much does this program cost?
What do the experts say?
How do I start the program?
Its simple, you make bi-weekly payments to your lender through LZL and save! This method enables you to make one additional payment on your mortgage each year. By doing this you build equity faster and reduce the amount of interest you pay on your loan.
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A homeowner with a $140,000 thousand dollar mortgage at 8% interest joins the program at the start of the loan period.
This homeowner’s mortgage is $1027 and bi-weekly LZL withdraws $513.50. Every six months we are able to apply $513.50 to the principal of this homeowner’s loan.
This homeowner saves over $65,800 in interest payments and reduces the number of years he has to pay on his mortgage by over 7 years.
After being in the program for only one year this homeowner would have $2217 in equity. If this homeowner did not use a program like this then the equity would be $1170. This is a 189% increase in equity after only one year!
Here is an example of a comparison of a mortgage paid with the regular scheduled monthly payments to the same mortgage paid using the biweekly mortgage program.
Mortgage Payoff Comparison of Monthly Payments to Biweekly Payments.
Mortgage Amount:
$140,000
Annual Interest Rate:
8.00%
Current Term (Years):
30 Years
Monthly Payment:
$1027.00 (Includes principal and interest payment)
Biweekly Payment:*
$513.50
Year
Mortgage Balance
Equity Balance
Monthly
Biweekly
1
$138,830
$137,783
$1,170
$2,217
16
$103,627
$71,036
$36,373
$68,964
2
$137,564
$135,381
$2,436
$4,619
17
$99,438
$63,095
$40,562
$76,905
3
$136,192
$132,780
$3,808
$7,220
18
$94,902
$54,494
$45,098
$85,506
4
$134,707
$129,964
$5,293
$10,036
19
$89,990
$45,180
$50,010
$94,820
5
$133,098
$126,913
$6,902
$13,087
20
$84,669
$35,093
$55,331
$104,907
6
$131,355
$123,610
$8,645
$16,390
21
$78,908
$24,168
$61,092
$115,832
7
$129,468
$120,032
$10,532
$19,968
22
$72,667
$12,337
$67,333
$127,663
8
$127,425
$116,157
$12,575
$23,843
23
$65,909
$0
$74,091
9
$125,212
$111,961
$14,788
$28,039
24
$58,590
$81,410
10
$122,815
$107,416
$17,185
$32,584
25
$50,664
$89,336
11
$120,219
$102,495
$19,781
$37,505
26
$42,079
$97,921
12
$117,407
$97,164
$22,593
$42,836
27
$32,783
$107,217
13
$114,363
$91,392
$25,637
$48,608
28
$22,714
$117,286
14
$111,065
$85,140
$28,935
$54,860
29
$11,810
$128,190
15
$107,494
$78,369
$32,506
$61,631
30
Total Interest Saved:
None
$63,147
Percent of Interest Saved:
27.5%
Time Required to Pay Loan Off (Years):
30-Years
23.0
Payment Time Reduction (Years):
7.0
*Does not include the $2.50 service fee payable to LZL Equity Programs Company
If you would like to order a “Mortgage Payoff Comparison of Monthly Payments to Biweekly Payment” analysis of your current mortgage. Fill out the Loan Comparison Form and mail or fax the form to our office.
Most biweekly mortgage providers charge a setup and enrollment fee ranging from $195.00 to $395.00. This is because many biweekly mortgage providers use brokers to market their product charging the setup fee and enrollment fee to produce their profits. LZL does not use a broker to market this program and charges no enrollment and setup fee. The bottom line is LZL is a low cost provider of this program. The only out of pocket expense is the service fee charge of $2.50. This fee is administered with each biweekly electronic transaction from your checking account. This fee compared to other biweekly providers is also low cost considering other companies charge as much as $4.00 per electronic payment.
Many experts agree that by paying your mortgage bi-weekly you will save 30 to 40 percent on the amount of interest paid to your mortgage company. This means homeowners save $50,000 to $100,000 depending on the amount of your loan. Homeowners also reduce the number of years paid on a loan by 7 to 10 years. Experts also agree that by using a third party company like LZL Equity Programs can be a smart and painless way to pay your mortgage bi-weekly. Remember it takes time and discipline on the part of the homeowner to provide their own program and it becomes a hassle to schedule 26 bi-weekly payments instead of 12 monthly. The third party provider allows a homeowner to setup their bi-weekly program and forget about payment schedules; the regular payments as well as the extra payments are taken care of by the third party provider for the homeowner. Below is a link to an article published in Money Magazine that may help you to determine if this program is for you.
Money Magazine Link
All that is need to begin the program is an EFT Authorization Form. This from gives LZL Equity Programs Company the permissions and necessary information to begin to withdraw biweekly from your checking account. The form also provides us with the necessary information to mail both your “regularly” scheduled payments as well as the one additional payment each year to your mortgage company. To begin your program simple fill out the EFT Authorization Form with the information requested and fax or mail it to our office.
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