True Value Services™

Mortgage Prepayment

Dear Homeowner

Did you know that even after you have paid 23 years of a 30-year mortgage, you still owe more than half?

That's right. You own only half of your house after paying on it for 23 years! Since your mortgage is front-end loaded with interest, during the early years you pay mostly interest with very little going toward principal. For example, during the first three years, you pay less than 2% toward principal, with over 98% going for interest. After seven years, you have paid less that 5% toward the principal, and it's not until the fifteenth year that you are even close to having 20% of the principal paid.

But it doesn't have to be this way!

You can be in control of your mortgage balance by making periodic prepayments toward your principal. This will save you thousands of dollars in interest and will help you to accumulate equity much faster.

Please call me at 555-7299 for more information.

Sincerely,

YOUR NAME
Sales Agent

P.S. This is the way to assure that you will have more equity when you get ready to sell your home.

Although the first line of this letter is scary, it is also true. If you can help new home buyers accumulate equity faster, you will be doing them a service that they will not forget when it comes time to list and sell their home. Your goal is to establish yourself as their real estate expert. (You may need to consult with a mortgage banker if you are not familiar with mortgage prepayment guidelines.)