H.E.A.P.™ EXAMPLE

See the difference
in real numbers.

A mortgage acceleration strategy becomes much easier to understand when you can see the numbers side by side. Here is a simplified illustration based on the example currently used in H.E.A.P.™ educational materials.

Start with a typical mortgage.

This example begins with a $200,000 mortgage and a traditional 30-year repayment schedule. Your results will depend on your own mortgage, household cash flow, timing, interest rate, and how the strategy is implemented.

$200,000

INITIAL MORTGAGE

30 Years

ORIGINAL TERM

Traditional

MONTHLY REPAYMENT

H.E.A.P.™

ACCELERATION STRATEGY

Traditional mortgage vs. H.E.A.P.™

The point is not simply to “pay extra.” The H.E.A.P.™ concept is about using available cash flow more strategically so principal can be reduced sooner and future interest expense can be reduced.
TRADITIONAL PATH

Standard mortgage repayment

Starting balance

$200,000

Scheduled term

30 years

Primary objective

Make required payment
Equity growth
Gradual
H.E.A.P.™ ILLUSTRATION

Accelerated equity strategy

Starting balance

$200,000

Focus

Reduce principal sooner

Interest saved*

$128,529

More equity.
Less interest.

*The current H.E.A.P.™ example page states $128,529 of interest savings on a $200,000, 30-year mortgage. This is an illustration, not a guarantee of results.

WHAT CHANGES?

It's about changing when your money works.

1

Income Arrives
Your normal household income continues to flow in.

2

Expenses Continue
You still pay normal household and lifestyle expenses.

3

Available Cash Works

Available dollars are used strategically against mortgage debt.

4

Equity Accelerates

Lower principal can mean less future interest and faster equity growth.

THE CORE IDEA

A smaller balance can mean a smaller interest burden.

The earlier principal is reduced, the less balance remains outstanding over time. The visual below is conceptual, but it shows why timing matters.

The H.E.A.P.™ analysis is meant to answer a simple question: Could your existing cash flow be working harder for you?

IN PLAIN ENGLISH

Earlier principal reduction

Lower outstanding balance.

Less future interest

Potentially more equity, sooner.

A clearer payoff path

Illustrated with your own mortgage and household numbers.

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