Those Mortgage accelerators . . . OR mortgage checking accounts. (MCA).
Noble...@gmail.com
I was doing research into paying off our mortgage faster, I
stumbled across several sites that offer accelerated pay offs for
mortgages.
Most of these programs seem to cost $3500 and they give you a
software . . . which is pretty much a spread sheet that tells you what
to do.
From what I have gathered, here is what you have to do:
1. get a Home Equity Line of Credit.
2. create a Mortgage Checking Account (MCA) (similar to what they
apparently have in Australia).
3. Have your pay check go directly into the MCA which would
suppress the amount the bank uses to calculate your daily equity.
( here is a video clip from one of the companies that explains
this: http://mca.wexlfinancial.com/web/company_wxl/package_def/lang_def/flash/110_step1.html
Does anyone know about these Mortgage Checking Accounts?
I have searched the frugal group and have not seen any discussion
of this. It almost sounds too good to be true. . .
Any help or input would be appreciated before I spend $3500 for
this program . . . which if it is really true would be worth it. . . .
but if it is not true, I don't want to be ripped off to the tune of
$3500. So, I am doing my research.
thanks in advance.
NT.
scrapq...@gmail.com
> Hi all:
>
> I was doing research into paying off our mortgage faster, I
> stumbled across several sites that offer accelerated pay offs for
> mortgages.
>
> Most of these programs seem to cost $3500 and they give you a
> software . . . which is pretty much a spread sheet that tells you what
> to do
Or you could just pay a bit extra each payment and have the extra
applied directly to the pricipal.
Then you can stop doing it if you need to, and it doesn't cost you any
extra.
For example: if your mortgage payment is normally $850 per month, you
send the bank a check for $1000 and ask them to apply the excess
directly to principal. Thus you have reduced the prinicpal balance
$150 this month. Next month you do the same. The month after that,
you need the $150 for something else, so you just send the $850 and
you have no problem.
John Weiss
> Or you could just pay a bit extra each payment and have the extra applied
> directly to the pricipal.
Then you can stop doing it if you need to, and it doesn't cost you any
extra.
> For example: if your mortgage payment is normally $850 per month, you
> send the bank a check for $1000 and ask them to apply the excess directly
> to principal.
What he said!
First check your mortgage contract and ensure there are no prepayment
penalties. Then check to see what you have to do to ensure any extra
payment is put toward principal (MANY contracts will put it in the escrow
account if there is no explicit designation.
If you send a check and a mortgage coupon every month, there should be a
checkbox on the coupon to designate the extra payment to go to principal.
If you do it by automatic electronic payment, you may have to send them a
letter telling them to allot the extra payment.
You do NOT have to spend even a dollar extra to pay off early!
clams_casino
>Hi all:
>
> I was doing research into paying off our mortgage faster, I
>stumbled across several sites that offer accelerated pay offs for
>mortgages.
>
>
>
Cool. You stumbled upon your own site & came here to brag about your
finding it?
h
"clams_casino" <PeterG...@DrunkinClam.com> wrote in message
news:le_Aj.14088$0M3....@newsfe17.lga...
Why would anyone pay a third party to accelerate their mortgage when all
they have to do is pay more than the minimum each month or an extra payment
a few times a year, etc.?
George Grapman
webs...@cox.net
> Because there is one born every minute.
I don't know about the OP and all that crap.
BUT,
I have read of a mortgage that IS slightly different.
The fastest way to explain what I think I know:
Plot your mortgage balance over the life of the loan.
You may pay ahead if you wish. Your balance goes down, your interest
goes down. You are below the plot line.
Someday, something happens. You don't have cash.
SO, you just skip however many payments you need to.
As long as you don't get the principle back up above the original
plot, you have no penalties.
You don't have to apply for a HELOC, etc.
I have read about this, but don't know if it widely available or only
a discussion. Sounds great, if it doesn't get screwed up.
Logan Shaw
> I have read of a mortgage that IS slightly different.
> The fastest way to explain what I think I know:
>
> Plot your mortgage balance over the life of the loan.
> You may pay ahead if you wish. Your balance goes down, your interest
> goes down. You are below the plot line.
> Someday, something happens. You don't have cash.
> SO, you just skip however many payments you need to.
> As long as you don't get the principle back up above the original
> plot, you have no penalties.
> You don't have to apply for a HELOC, etc.
>
> I have read about this, but don't know if it widely available or only
> a discussion. Sounds great, if it doesn't get screwed up.
That's exactly what I thought this was talking about. I've read
about the same thing, and I believe it was even Australia where
it was offered. I remember thinking it would be great to have
such a mortgage but not being able to find it here in the US.
However, I'm a little surprised to hear some company is offering
it for $3500. That's a lot of money. I'm guessing all they have
to do is take your money and pay the mortgage later, and if you
fall behind, they don't owe anybody anything, so I'm not sure
what you're getting in return for that $3500.
- Logan
Lou
<webs...@cox.net> wrote in message
news:97e5edb9-dc9a-4b00...@s37g2000prg.googlegroups.com...
Not around here. In New Jersey, you can generally prepay on a mortgage at
any time without penalty (state law). But no matter how much you pay this
month, you still owe your regular payment next month (unless your prepayment
was enough to pay off the mortgage).
webs...@cox.net
Yeah, I forgot about that $3500 tidbit. Frankly, I'd look long and
hard, and then probably RUN from anything that charged anything for a
"program"
I wouldn't even pay for the programs that pay down a mortgage early by
making 2 payments a month. You can do that yourself for free.
My last mortgage was one of the highly advertised "no-cost"
mortgages. It worked out just fine for us. After spending a small
fortune over the years on mortgage costs, I'm a fan of these things.
Some say I pay a slightly higher interest rate, but it appeared to be
right in the range of everything else I looked at.