While the ideal payment option varies by individual circumstance, an equity accelerator program can help reduce the interest balance on a mortgage loan by enabling faster repayment on the principal amount. This results in overall savings, according to Tiffany C. Wright for Zacks Investment Research.
Equity accelerator programs can be a simple and effective method for repayment. They typically work by halving the payment amount and doubling the frequency. Quicker repayment results in less accrued interest and a higher proportion of the payment allocated to the principal amount, leading to faster equity. Interested parties must enroll in a formal plan, subject to fees, or send an increase of payments clearly marked principal, explains Wright.