Let's Use Another Example
We talked earlier (in Section 1) about making large, up-front payments to reduce the mortgage balance quickly so that more of your monthly payment goes towards paying the principal amount instead of interest.
where are the lump-sum payments of $5,000 going go come from.
That is where your BLOC comes into play.
The BLOC account becomes the money source that makes the lump sum payments to reduce your mortgage loan fast. Let's illustrate an example.
The program will instruct you when to advance yourself a lump-sum payment to pay on your mortgage: 
|
What Does This Show
|
Line of Credit Available: |
$60,000 |
|
| |
Balance Forward from July: |
- $2,500 |
| |
An Advance from your BLOC |
- $5,000 |
| |
Pay Living Expenses |
- $4,000 |
| |
Balance Owned |
- $11,500 |
| |
Deposit Payment |
+ $5,000 |
| |
Ending Balance Owned |
- $6,500 |
- Your starting balance was $2,500
- Your ending balance was $6,500
- you never made a schedule payment to the BLOC:
your income represented your monthly payment
- you borrowed $9,000 from the BLOC
- you only pay interest on the $6,500 balance
- your BLOC become an interest cancellation account
- your lump-sum payment of $5,000 to pay down your mortgage traded $23,304 of daily compound interest for a simple interest charge of $6,500
|
