Money Back Home Loan by Jim Woodard Freelance Writer June 1997 A recently introduced concept for home mortgage loans could revolutionize the mortgage industry nationwide in future months and years. The mortgage is named the "Money Back Home Loan." The loan, now available for both financing the purchase of a home or refinancing an existing home mortgage, has several unique characteristics. It represents the most dramatic change in the structure and benefits of home loans since the adjustable-rate mortgage was introduced. With the new loan, the principal balance does not amortize (reduce) with each payment. It remains the same throughout the loan's term even though the monthly after-tax payment is about ford motor credit credit card debt calculator the same as would be paid with a traditional mortgage. The money that would normally be used to reduce the principal is, instead, available and may be allocated to a special universal life insurance policy that builds cash value on a tax-deferred basis for the borrower with every payment. At the end of the term, there is enough cash value accumulated in the fund to pay off the loan, plus provide a substantial cash payment or income stream to the borrower. Alternatively, the cash accumulation can be used by the borrower as part of the down payment on another home, or it can reduce the term of the stafford student loans credit card debt calculator mortgage. Typically, a conventional 30-year loan can be paid off in about 20 years using this system if the cash value is used for that purpose. Another advantage is a significant tax benefit. Since the principal balance does not reduce, the tax- deductible interest portion of each payment remains at its highest level. Also, the loans are insured. If the borrower dies during the mortgage term, the loan is paid off by the insurance company. That means the family home passes debt-free to the heirs. This mortgage concept is new in the United States, but not in Europe. In fact, this loan is now the "mortgage loan of 30 year mortgage rates credit card debt calculator choice" in the United Kingdom, where it comprises the vast majority of all home mortgage loans. The loan concept was brought to the United States by Investment Mortgage Corporation (IMC). Other major business partners actively participating in the program are a prominent European bank; Coastal Mortgage, one of the Carolinas' largest mortgage banking companies; Jefferson-Pilot, a top-rated life insurance company; Interstate Johnson Lane, a major investment banking firm; AT&T, provider of the InView software program designed specifically to illustrate Money Back Home Loan offerings in Europe and the U.S. Investment Mortgage Corporation coordinates each of these functions plus providing marketing and training for the group. "Our mortgage product is credit card debt calculator credit card debt calculator based on the