The basic idea is that you deposit all of your income into a special bank account that is linked to your mortgage. Every time you deposit money into the account, the deposit shows up as a payment towards your mortgage balance and drops the principal by that amount. You then use that same account to pay all your normal recurring bills and at the end of the month, the interest is calculated based on your average daily balance.

Since you never actually write out a mortgage payment, all the money left in your account at the end of the month after your regular bills and spending serve to keep your mortgage balance lower and saves you interest. This practice acts to accelerate the principal payments allowing the loan to be paid off years earlier.

Sounds great, right? Well, for most people, this idea works wonderfully and certainly can help build equity quicker and pay off faster.

However, there are some drawbacks. For example, since the product is a Line of Credit, you technically have access to a lot of money depending on how much equity you have in your home. This has the potential to be problematic if you enjoy going to the mall or electronics store to buy the latest clothing styles of that new plasma TV.

If you are interested if finding out how the Home Ownership Accerator works, CMG offers a great mortgage savings simulator. The simulator is simple to use and can show you your savings over a standard mortgage.

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