Homeowners across the country have found a way to pay off their mortgage in record time and save hundreds of thousands of dollars in mortgage interest without changing their income or spending habits. Popular in Australia and the U.K., a FAHM loan, an acronym for First Alliance Home Mortgage, a New Jersey based Mortgage company that is marketing this new mortgage concept, allows homeowners to apply all of their income to the principal balance on their mortgage. By applying any available income directly to principal, the amount of interest charged can be much less over the life of the loan, sometimes hundreds of thousands of dollars less. Homeowners, then can use checks, online bill pay, and even an atm card to access money just like a checking account. By, essentially, combining a mortgage with a checking account, thousands of dollars in interest can be saved.

"Homeowners are extremely excited about the FAHM loan" said Sam Khalil, President of First Alliance Home Mortgage, "One of our borrowers spent hours on our website because he couldn't believe his eyes when he plugged in his information on the FAHM calculator on Smallermortgagepayment.com". Some homeowners can pay their house off in as little as 4 years if their cash flow is good enough.

One of the main reasons this loan works so well is because of the way the interest is calculated. A conventional loan uses a 30 day average principal balance to calculate interest. With a FAHM loan, interested is calculated based on a daily average. This can make a huge difference when used correctly.

"You haven't heard of this loan before because why would lenders want to heavily market a loan that will yield them a lot less interest?" Sam Khalil said "Most lenders don't. However, I want everyone to know about this program because it is really life changing and I really believe it will be the hottest way to pay off a mortgage in the next few years, once the word gets out of course.

Source: First Alliance Home Mortgage

Web site: http://www.smallermortgagepayment.com/