Mortgage Accelerators...Scams or Success?
Everybody who has a mortgage longs for the day when those
monthly payments will end. Thousands of people are looking
for ways to speed up that process, and many are finding the
answer in what is called Mortgage Acceleration.
Mortgage accelerators come in differing shapes and sizes,
and perform at different levels. The bottom line is this:
If you want to pay off your mortgage, you simply must apply
more money to the loan. Preferably, we want to do this in
the fastest manner with the smallest amount of risk and the
least impact on our lifestyle and monthly payment structure.
Some acceleration programs provide you with a plan to make
small additional payments each month. This is effective in
shortening your mortgage term, because additional payments
(made to principle only) will lower the overall balance
that you owe. That means less interest due. Interest is the
enemy. Paying an extra $100 per month can have the effect
of shortening your loan term by as much as 4-5 years. The
only way to go faster is to apply more money to your
principle balance. But how? Most of us simply do not have
much "extra" cash hanging around. If only there were a way
to find extra money in our bank accounts, we could really
accelerate our payoffs.
So, comes to market a whole new selection of options. It
turns out that for over 15 years, folks in Australia, New
Zealand, and parts of Europe have been using a system that
squeezes more money out of their labors and applies it to
their home loans. These people are paying an average of
$150,000 less in interest for their homes than the average
American. How do they do that?
What these Aussies, Kiwis and Euros are doing is combining
their home loans, checking accounts, savings accounts, and
lines of credit to create a new scenario in cash flow. The
mathematics are sound and the results are undeniable. It
works.
If you combine your primary checking account with a Home
Equity Line of Credit, or HELOC, you can basically use your
income to cancel interest in your heloc. This interest
cancellation creates cash flow in a sense. This new cash
flow creates opportunity for that "extra" money. You can
actually use the bank's money "interest free" much like you
would a credit card.
It is easy to see how, with a little bit of poor planning
and bad math, you could get your self in financial hot
water here. You need help. So here is where you must be
wary. Help means involving someone else. Uh Oh! Red Flag!
"Other people" usually means high fees or possible scams.
That is a matter of record, after all. And when it comes to
your money….well, these other people had better be squeaky
clean.
So, who can help, and who can you afford? Wealthy people
have financial planners who they pay very well to watch
their bottom line. Most of us cannot afford their hourly
fees. So we just throw up our hands, go to work, and live
paycheck to paycheck. But we still would like to be debt
free and reach financial freedom. So let's explore the
options again.
A Google search on mortgage accelerators will bring up some
interesting things. You will find the Big Boys
there…Countrywide, Lending Tree, Quicken, Eloan, GMAC,
DiTech, etc. These are the big mortgage companies who
already have you in bondage, and now they want to ease your
pain a bit with a bi-weekly pay plan or perhaps a nice
re-finance package. Refinancing will only make your
problems worse in the long run. The extra payment plan was
already discussed. We want more.
Dig a little deeper and you will begin to see other
companies there offering other options such as the
Australian idea. Investigate these carefully. You want to
find the option that is safest and offers the best results.
And as for me, I don't have the time to learn advanced math
and theoretical quantum financial physics. I need something
that will make it easy. Let's peel back some onion skin.
Equity Accelerator is a bi-weekly plan. For one thing,
that's not fast enough for me. They also charge monthly
fees and THEY make your payments. That means they are
accessing my money, and that is just too frought with bad
possiblilities.
CMG/ Macquarie/ Home Ownership Accelerator: These guys are
using the interest cancellation effect of a line of credit.
This is good stuff. You can cut a mortgage in half using
this system. You have to refinance to their accounts, which
may be an expensive endeavor. The way I understand it, your
checking, mortgage, and credit line all get mixed together
at a variable rate of interest. There are recurring annual
fees. If you are saving years and thousands, then those
fees are negligible in the end. I still don't like the idea
of someone else being that much in control of my financial
situation. This is good. Is there anything better?
Sydney Financial Group out of Australia has a promising
acceleration program, claiming that you can payoff your
mortgage in about ½ the time or better. They, again are
combining your checking and savings into one account which
is held in a HELOC. They have online software that
instructs you to make additional payments every month to
your first mortgage company. This rapidly begins chipping
away at your principle balance and eliminates very large
amounts of interest. Sydney will set up your heloc
themselves, and then their $3500 fee is taken out of that
heloc to get you started. When I asked them about
guarantees, they told me that if I follow the program it
will work, but no guarantees.
United First Financial has brought to market a similar
program that is beginning to catch on. They have reportedly
spent 4 years and millions of dollars creating intuitive
software that combines the best of ideas from Australia and
Europe and the American banking industry. Their product,
called The Money Merge Account, is a remarkable tool that
provides a customized and flexible plan for each user. The
user is guided by the software to pay off their 30 year
mortgage and other debts in an average of 8-11 years.
United First claims that there is no refinancing needed,
no increase in monthly payments, and no change in
lifestyle. They ran a beta test on 400 homes in Denver,
Colorado with a 97.4% success rate. Everybody seems to be
very happy with the product. The MMA also costs $3500, and
that fee is also suggested to be paid from your heloc,
where interest cancellation and cashflow pay for it without
any additional monthly payments.
The MMA does not touch your money and it does not pay your
bills for you. The MMA provides a real time financial
"dashboard" that shows you where you are headed and also
the real cost of miscellaneous purchases and deposits.
Every withdrawal , or deposit results in an adjustment to
your payoff date. The MMA is transferable to your next
property, and all updates are automatic and free of charge.
U1st makes a projection of every year until payoff for you,
and they guarantee that performance (if you follow the
software) or your money is 100% refundable.
These are all good tools presented by reputable companies.
They all have the ability to pay your mortgage off faster,
and put you on the road to financial freedom at a faster
pace. You will, of course, have to decide which program is
right for you, and I am sure that more programs will be
coming onto the stage as these ideas move more to the
forefront of public knowledge. I will be sure to keep an
eye on things, and report on new companies and plans as
they develop in this exciting category.
Finally regular people can have access to a level of
financial wisdom that was not available to them before. So,
don't refinance or fall victim to scams that want to have
access to your accounts. It's time to take control
yourself. These ideas and products are literally
transforming families from a pattern of debt to a new
paradigm of wealth building.
Just think about what you can do with your monthly payments
when they no longer are required to pay debts. Even a
conservative investment strategy will amass huge amounts of
cash when supplied with a steady flow of capital, like the
flow going out to pay the interest on your home loan this
month, and the next, and the next, and the……….Don't let the
banks make all of the money. After all, you are the one who
works for it.
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Marc Rosenbaum
The Debt Eraser
970 562 4777
Due to the exciting nature of debt elimination, I have
embarked on a mission to introduce as many people as
possible to the amazing transformational power of the MMA.
Please contact me today for a free mortgage analysis, and
get on the fast track to financial freedom.
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