Mortgage Accelerator - any experience?

Question

Hi, I've known about this for some time but wasn't very open to it in the past. Much more open to it now.

I was approached by someone that has develop his own "Australian bank" program. In a nut shell: you use fund "sitting" in your checking account towards your mortgage balance and with some mechanics you can use this account as checking account for your daily use AND at the same time make the funds work in your favor by lowering your mortgage balance, thus shortening mortgage years and paying less interest over the years.

When I asked why do I need a software (SW) for it, I'm good with math and with a good excel, he said that when you have multiple mortgages (1st and 2nds) and 3 homes or more it gets complicated and the SW helps you determine where to save more first and how to manage it smartly and easily.

The whole concept of mortgage accelerating makes perfect sense, and I know there are different ways to go about it but he wants $3500!!! for the license.

This is not through the UFirst MLM that's out there.

My questions: 1. Have you had any experience good or bad with mortgage accelerator programs? 2. which would you recommend or avoid and why? 3. Are you familiar with a free SW or "cheap" one?

thanks

Dan

Will Barnard · Answer

There is no magic to the program as Richard and Rich pointed out, in fact, it is basic math. The concept is good though and I apply at when I can.

Simple, if you can get a HELOC (home equity line of credit that has a low interest rate (mine is at 4%), all you do is apply all your paychecks (income) towards the heloc immediately and pay your bills and mortgage from the Heloc. Since your mortgage is due on the 1st and not past due until the 15 day grace period, you can esentially save 15 days of interest by paying your mortgage on the 15th instead of the first. Apply that savings to the principle of your first mortgage balance and WALA - you reduced your principle without having to make more money.
That of course is a basic simple example and there are several other ways to apply the concept to essentially pay off your mortgage faster.

More over, these types of programs (Ufirst for example) are helpful for some to manage their money more efficiently as they can not seem to do it on their own. All it takes is a little dedication and knowledge of numbers.

Richard Warren · Answer

This topic has been debated here ad nauseum. The people who endorse it wholeheartedly also happen to be the ones selling it. Save your money.

See this thread:

http://www.biggerpockets.com/forums/50/topics/11432-money-merge-account-

:cool:

Rich Weese · Answer

As many of you know, the way my book came about was a Seminar co. (MLM) was coming out with new software program. They wanted my book as a "hook" for their software. Lets' just say I checked it out thoroughly and decided i didn't want or need to be involved.
What Richard has said, basically says it all. There are look alike companies out there. Remember I said they wanted me to speak as keynote speaker regularly in U.S. and AUSTRAILIA. Leave it at that. I didn't get involved and would be very nervous about suggesting it to others. Rich in FL.

Richard Warren · Answer

It's the same concept and it still isn't worth the $3500. It compares future dollars to present dollars. Is a dollar today worth the same as a dollar 30 years from now? Of course not, but that's the comparison they make. They want you to believe that there is some "magic" in the software. Take the $3500 and use it to pay down your mortgage balance and see how much you save over 30 years.

:cool:

Dani Beit-Or · Answer

Richard, thank your the reply. I read through the thread and it doesn't answer what i'm asking - it's mostly a discussion on UFirst.

Thanks

Dan

Mortgage Accelerator - any experience?

Mortgage Accelerator - any experience?

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