|
Posted by jaimebuckley@gmail.com on April 24, 2007, 12:28 pm
Please log in for more thread options
wrote:
>
>
>
>
>
> > > Since this is a mortgage newsgroup, I felt that a post offering a way=
to
> > > pay off notes
> > > using current income, without refinancing, or making additional out of
> > > pocket payments
> > > to principal or forcing the borrower to change his lifestyle would be=
on
> > > topic. Have you
> > > noticed that most of the posts on this group are about everything but
> > > mortgages.
>
> > Your post is on topic, although it is a commercial post that seeks to d=
rum
> > up business. Since I am asking questions about your product, yoiu should
> > answer them here so that others might benefit from the answers you give=
me.
>
> > I am a former mortgage lender, which explains why I know the HELOC 1st
> > product. I know lots of stuff about mortgage lending, and the first rul=
e of
> > mortgage lending is that the bank wants themoneynot the property. The
> > second rule of lending is the only way to pay a note off is to reduce t=
he
> > principle, pay more principle than is required and the note can be paid=
off
> > early.
>
> > > TheMoneyMergeAccountenables the homeowner to use the bank'smoneyfrom
> > > an
> > > open ended 2nd position HELOC to cancel future closed end interest in=
the
> > > 1st mortgage.
>
> > > Our system's algorithms enable the homeowner to pay off both the 1st =
and
> > > HELOC 2nd
> > > in as little as 1/3 the time. That's why we have some customers on
> > > schedule to be FREE
> > > and CLEAR on a 30 year note in 8 years. It takes some people longer a=
nd
> > > some people
> > > can do it in less time.
>
> > The ONLY way to do that is to takemoneyfrom your pocket and throw it at
> > the mortgage.
>
> > You said there was no refi involved in your plan, but then you went on =
to
> > say that the borrower uses the banks'moneyfrom a HELOC to make payments=
on
> > the 1st. If the borrower hasn't already got a HELOC, then he must refin=
ance
> > in order to get one. The bank is not going to let anybody use itsmoneyf=
or
> > free. Period.
>
> > To the extent that one can divert savings dollars from the savingsaccou=
nt
> > and use them to pay down the mortgageaccount, then one can repay the
> > mortgage in short order and not change their standard of living. That m=
uch
> > is accurate.
>
> > My question to you is, since mortgage interest is tax deductable, then
> > wouldn't a person that has the ability to repay a 30 year mortgage in 8
> > years be better off to get rid of his other debt and keep his mortgage?
> > Indeed, if equity appreciation is climbing, then wouldn't a high dollar=
wage
> > earner actually be better off with an Interest Only note for 5 or 10 ye=
ars
> > where he could take the tax advantage of the interest he pays? I'm not =
a tax
> > guy, but it occurs to me that in a world of limited deductions, there a=
re
> > people that actually benefit from paying mortgage interest. They have to
> > live somewhere, they might as well take a deduction on their residence.
>
> > > Our customers don't have to know anything about financial mathematics.
> > > They just have to
> > > follow the system's suggestions and tell it the truth about what they=
do
> > > in the real world.
>
> > > We believe that it is better to help people get out of debt than to k=
eep
> > > them there forever.
>
> > > The math works and so does the MMA. If you would like to see some tru=
th
> > > about mortgages,
> > > please visitwww.be-mortgage-free.infowhereyou may learn more.
>
> > > 1st position HELOCS are ok but dangerous for many people. Why do you =
think
> > > one needs
> > > very good credit to get one? The MMA works on any mortgage and most p=
eople
> > > can qualify.
>
>
> > >>> First of all, I am not lying and we are notmoneylenders.
> > >>> Your discussion about HELOCs is getting at the idea our system empl=
oys.
> > >>> It works with any kind of mortgage and the homeowner does not refin=
ance
> > >>> his existing note. We show the homeowner how to force changes to the
> > >>> amortization schedule by making precise equity transfers from HELOC=
to
> > >>> 1st mortgage. But he does not usemoneyout of pocket.
>
> > >>> I respect your opinion, but you're simply not sufficiently informed=
on
> > >>> what's available.
>
> > >>> If you would like to learn more, then contact me directly.
>
> > >> The point of a news group is to discuss topics in an open forum where
> > >> participants and observers can gleem information they otherwise migh=
t not
> > >> have or know. Technically, it is very poor form to sell products thr=
ough
> > >> a newsgroup, indeed many groups forbid commercial postings -- your p=
ost
> > >> is a commercial post, by the way, because you are soliciting busines=
s=2E
>
> > >> It is not mathematically possible to pay off a mortgage without maki=
ng
> > >> larger payments than the amortization schedule calls for. Period. If=
one
> > >> is not takingmoneyout of his pocket, then the outstanding balance is
> > >> not going down.
>
> > >> You can sell a product that pays the mortgage faster but does not ch=
ange
> > >> the buyer's standard of living IF the product captures all of the in=
come
> > >> dollars and reduces the principle amount immediately and vastly. The
> > >> buyer/borrower still has bills to pay, and he pays them with HELOC
> > >> dollars (checks issued at the onset of the mortgage), but the differ=
ence
> > >> in total income and total outflow remains in the mortgageaccountand
> > >> reduces the principle very quickly.
>
> > >> Alternatively, the buyer/borrower can change his standard of living =
by
> > >> throwing extra cash at the principle every month and reduce the
> > >> outstanding balance that way.
>
> > >> The difference in the two methods is that the first is a true Home E=
quity
> > >> Line of Credit in a 1st Trust Deed position that gives the borrower
> > >> access to as much as 90% of the equity value of the home without hav=
ing
> > >> to refinance, the latter method locks up the equity into the mortgag=
e and
> > >> requires a refi in order to gain access to any equity acquired. The =
first
> > >> method, the HELOC 1st, effectively takesmoneyfrom another savings
> > >> vehicle and moves it to the mortgage. The effective APY of the savin=
gs
> > >> dollars becomes the interest rate of the mortgage. Additionally, dai=
ly
> > >> living expenses and regular bills that are paid through the HELOC ch=
ecks
> > >> will transfer those bills to mortgage interest, which then become a =
tax
> > >> deduction.
>
> > >> Let's say you make $7000 per month. Your mortgage is $3000, and the =
rest
> > >> of your bills -- utilities, credit cards, groceries, car payments,
> > >> etc. -- add up to $2000. Your mortgage and bills are $5000, your in=
come
> > >> is $7000. These numbers would put $2000 into savings each month. If =
you
> > >> had a HELOC 1st, then you would reduce your principle by that $2000
> > >> instead of collect interest on a passbookaccount. Another thing is t=
hat
> > >> you get paid on the 1st and the 15th, but don't make the house payme=
nt
> > >> until the 25th. This parks yoru house payment for a minimum of 10 da=
ys
> > >> not making anymoneyat all. If your pay check was deposited directly =
to
> > >> the HELOCaccount(a requirement of the program, by the way), then your
> > >> principle is reduced from the day you get paid, not from several days
> > >> after you write the check. You have a lower Average Daily Balance fr=
om
> > >> which to calculate interest due, and you lower the balance more, and=
you
> > >> pay for stuff with HELOC dollars that become mortgage interest that =
is
> > >> deductable from income taxes.
>
> > >> It is a good program for the right kind of borrower.
>
> Jeff,
>
> The Program Ashley is talking about is a refi of sorts. It takes the
> second position,
> and by doing so, on a smaller sum ofmoney, takes a great deal from
> the risk of
> using a 1st position variable rate mortgage, such as the ones used in
> Australia.
>
> The greatest online source of infomration on theMoneyMergeAccount
> Program
> iswww.thejubileeproject.org, though I would be happy to address your
> comments here
> so all readers can gleen what they need to. Thi sprogram does not work
> for all Homeowners,
> as nothing does for everyone, but I assist people with credit scores
> as low as 600-620,
> not the 700+ as you remarked concerning the 1st position HELOCs.
>
> The key to this program is the "discretionary income". You are correct
> that you
> have to apply more to the principle to pay down the balance. However,
> the danger with 1st position
> situations comes when the interest rates rise, even minimally. A
> single point increase can
> suck away a persons discretionary income and open the possibility of
> losing your home.
> The second position HEloc, however, used in connection with our
> proprietary software and
> ongoing personal support, allows the homeowner to shield themselves
> from that risk.
>
> We are able to use smaller amounts ofmoney, use the HELOC as a
> primary checkingaccount,
> where we make payments to the line of credit and pay our bills from
> the line of credit. This
> then uses the paychecks to hold down the balance so the monthly
> finance charge is a minimum,
> which the discretionary income eats away at the actual balance. Of
> course you still have to pay
> themoneyback, and of course it's going to come out of your pocket.
> However, it is controlled
> and manageable with the software.
>
> This process allows you to use the Banksmoneyat a reduced interest
> charge (because we are
> using a HELOC with an interest only payment option, open ended
> interest and a variable rate, so
> we can make multiple payments per month), and the Bank is only looking
> for a finance charge. Our
> paycheck becomes that finance charge, as the discretionary income eats
> away at the actual balance.
>
> Now, the main question poeple ask is: "What is 'discretionary
> income'?" It's what you have at the
> end of the month which you would normally put in savings. You say you
> don't have any? Most people do.
> Do you have credit cards? Car loans? ...
>
> read more =BB
I would like to apologize to Ashley on these posts,
mainly because I didn't take the time to go to:
www.be-mortgage-free.info
I highly recommend this site, mainly because all the content is
100% United First Financial material and approved/100%
accurate. If you have read this post, I do suggest you go do
your research, and to get the information from a reputable source.
I have to admit to you readers that it was very unprofessional that
I put in another source (my own), when I failed to simply click on
Ashley's source to confirm what it was.
I apologize publicly to Ashley, and to the readers of this post.
If you have questions from this post, please contact Ashley,
and NOT The Jubilee.
God Bless.
| 
XML Sitemap