My husband and I met with my rep at KAP Financial tonight. I do think there's more to it than just paying extra toward the principal. The key point is that all your money sits in the account, which lowers your interest rate. Our paychecks will get deposited directly into the account. We'll pay all our monthly bills on an American Express, and pay it off at the end of each month from that same big account. That way, the money sits there all month, lowering our interest rate. The less we spend each month, the more we save, the more stays in that account which lowers our interest.
It is complicated. But it made a lot of sense to my husband. I think we're going to do it. If it's a disaster, we can refinance back to a traditional loan anytime we want. I think the video presentation on KapFinancial dot com's website explains it well.
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