Mortgage
Checking Accounts
Helping Americans Pay off Their Homes in 1/2 to 2/3* Less Time
Do you have a Mortgage Checking Account (MCA)?
You soon will. MCAs are helping people to pay off their homes in 1/2 to even
2/3* less time than traditional mortgages by combining a person?s checking,
saving, and mortgage accounts into one and making good use of a concept
called daily interest calculation. The amazing fact is that this can often be
done with little or no change in income or spending.
The MCA was first created by the National Australia Bank when it decided
to tie mortgages to checking accounts, offered daily interest calculation, and
did not penalize borrowers for increasing payments or paying in lump sums.
In taking these actions, the National Australia Bank signaled its belief that
a mortgage was a loan that should be paid off. From Melbourne the idea
eventually migrated to New Zealand, England, Canada, and America.
A traditional Australian MCA is a single, variable mortgage account that is
tied to a checking account. The main problem with the traditional approach
is the variable nature of the mortgage. For good reason, many people are
reluctant to have a mortgage with a rate that can change monthly.
Realizing this weakness in the traditional approach to
MCAs, the WeXL
Financial
Group changed the traditional approach to make
it easier for people
to use an MCA. Instead of having one MCA that covers the entire amount of
the mortgage, the WeXL Financial Group uses a person?s current first mortgage
and a converted Home Equity Line of Credit to act as the
MCA with
specific features that have been identified to work within an overall system.
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