Personal Finance

Alternative options for rising interest rates

As interest rates have risen in the last six weeks from record lows, homeowners are once again face with finding viable options to reduce the amount of interest paid on their home loans. The rush to refinance provided borrowers with good to excellent credit the opportunity to take advantage of low interest rates, that helped to reduce their monthly mortgage payments, which was the only benefit provided by the lowered rates.

The one option that still eludes most homeowners, and is recognized and supported by financial and government organizations including Fannie Mae, is Biweekly Equity Acceleration. This industry has made great strides to become a viable tool to help homeowners reduce their mortgages, while building equity in their homes up to three times faster. Biweeklies provide another important benefit versus refinancing; it allows the loan to be paid off sooner than the original stated term.

A mortgage company will not accept a half payment except by special arrangement, and this sort of arrangement is rare. To begin a Biweekly Equity Acceleration Program the homeowner deals with a service provider like Consumer Mortgage Reduction Service, or another company. There are about 30 companies in the United States that specialize in biweekly equity acceleration, and they provide mortgage reduction services directly to the homeowner.

These programs are easy to initiate and do not require refinancing, just complete a few short sign-up forms, and the biweekly company takes over from that point. The process does not change your current mortgage arrangements, just the way your payments are made, instead of one monthly payment the mortgage is paid one half every two weeks. These biweekly payments are automatically deducted from the clients checking or savings account, and applied to the loan in a way that reduces the principle amount owed every six months.

Today’s consumers are more than ever trying to reduce the amount of debt they have, and this is evident by the rapid rise of Debt-Consolidation companies, but the largest debt a consumer has is, the home mortgage. The majority of homeowners overlook this fact when planning to reduce their dept, yet the use of biweeklies can decrease their mortgage substantially, in a shorter period of time, usually cutting the term by six to ten years.

And, with the rising interest rates, trying to reduce their debt load including the mortgage will become a bit more difficult without taking advantage of biweekly programs. A 30-year fixed rate mortgage for $150,000 at 6% interest would be paid off 6 years earlier, and would save the homeowner up to $30,000 in excess interest payments. The amount of time and interest saved depends upon the amount of the loan, and the interest rate.

“Biweekly Equity Acceleration has been in existence for over 20 years, and has allowed millions of homeowners to pay off their mortgage in less time, while building substantial equity faster,” said Thad Collins owner of Consumer Mortgage Reduction Service whose website is located at; “While saving the homeowner up to $60,000 in needless interest payments, without refinancing, and this is accomplished regardless of the current interest rates,” he continued.

Interest Rates have become a great concern for homeowners, and those who may be contemplating purchasing a new home, but with alternatives to rising rates like biweekly equity acceleration programs, these concerns can be eased. If the average homeowner can save money per year in any interest rate environment, then the use of biweeklies provides a solid foundation to the purchase of a new home.

About the author
Thad Collins is the owner of CMRS which provides biweekly equity acceleration programs to entrepreneurs looking to start a new business venture, for more information visit