Mortgage Acceleration

[ash]

Hi all,

I have a friend that has been snookered (my impression) into a mortgage acceleration program (normandmike.com) that, from what I can understand, has the participant use a HELOC to fund their living expenses, and then use their income to paydown their primary mortgage early.

The claim is that you will not only payoff your loan early (which you could do anyhow), but that you will also save money overall by somehow robbing Peter to pay Paul.

My normally good sense tells me, of course, you ain't saving any money by borrowing at 8% to payoff debt at 6%, and that this appears to be nothing more than a scam, which probably includes some level of MLM to boot.

Does anyone have any information on how these programs work (other than they take your hard-earned money and run)?

 

[ash]

Oh, by the way, let's not turn this into a should I pay off my loan early, or not pay off my loan early discussion, as that's a whole other matter entirely. Thanks.

 

[wheel9]

I think this is merely a program that instead of saving any money in a savings account, instead it all goes into the mortgage to pay down the principal. In times when you can't make the regular payment, you are increasing the principal. In essence, the pitch is that any money saved "makes" the rate of your mortgage.

Probably for people with little will power to do the same thing for themselves. Also, they then have no savings, but a paid down house. Probable the only people this might be attractive to is a small business person or someone with varying rates of income.

 

[maddythebeagle]

http://www.fatwallet.com/forums/arcmessageview.php?catid=52&threadid=327817

fat wallet had a thread on this...also called tardus system...yeah, people could set this up without fees....and use credit card balance transfers to pay little or no little interest and bounce to heloc when need to....

 

[d]

just $1295.00 !

 

[ash]

just $1295.00 !

The price is a huge red flag! Why pay $19.95 for a book when you can spend $1295.00 for a PDF download from a website!

 

[wheel9]

The concept is sound, but not what they are charging for it! There are places in the country where it is an option when you set up a loan.

 

[jazz4cash]

I think the www.tardus.com site has a decent FAQ section that explains thier process, so maybe you could show your friend...........$1295 sounds scandalous.

 

[ash]

The concept is sound, but not what they are charging for it! There are places in the country where it is an option when you set up a loan.

Okay, so what prinicple does it use to work? How do you save on interest by paying down 6% (30 year fixed) debt, with 8% (HELOC) debt?

Is it a kiting program essentially? Is there some interest-free grace period with HELOCs?

 

[CCdaCE]

This has been discussed somewhat in other topics.

http://early-retirement.org/forums/index.php?topic=4179.0

http://early-retirement.org/forums/index.php?topic=8286.0

In the second one, where Masterblaster does the math is particularly good.

-CC

 

[ash]

Thanks CCdaCE.

It looks like there is some logic in this approach, although I fear it's overly complicated, and I'd be willing to bet that majority of people that take this approach end up further in debt ten years down the line, without their house paid off.

 

[Danyon]

Re: Mortgage Acceleration Industry

I'm not sure what happened to your friend, but I do know that the concept is sound and it is all based on paying down your average daily balance on your debts. I currently am working with a very successful program Gauranteed to work if your income is greater then your expenses....

They provide a Free No Obligation Analysis that will illistrate your savings. They simply run the numbers and the program can either save you money or it can't best thing about it you find out upfront and its Gauranteed to work if followed or your money back!

I don't know what the other company can do or where they got the software, but what I'm doing works and the President/CEO of the company use to work for American Express as their senior CPA and real estate advisor who developed the program. They have a web presentation where visitors can ask questions and they explain how everything works... I think they are evey Thursday evening.

 

[d]

what was the cost of this "very successful program"?

 

[brewer12345]

And how much of a commission did "Danyon" get?

 

[eridanus]

Re: Mortgage Acceleration Industry

the President/CEO of the company use to work for American Express as their senior CPA and real estate advisor who developed the program.

Well, that's reassuring!

 

[pfpelican]

And how much of a commission did "Danyon" get?

Bingo! Now why did my spam detector go off?

 

[Danyon]

what was the cost of this "very successful program"?

The software application and consultation service is $2495.00

 

[Danyon]

And how much of a commission did "Danyon" get?

I recently joined the company as an agent after using the software and yes their is a commission for sales agents of $556 or more depending on your position in the company.

 

[brewer12345]

I recently joined the company as an agent after using the software and yes their is a commission for sales agents of $556 or more depending on your position in the company.

Go away, spamming [MODERATOR EDIT].

 

[Nords]

I recently joined the company as an agent after using the software and yes their is a commission for sales agents of $556 or more depending on your position in the company.

Danyon, while your full disclosure is appreciated, the fact that you're an employee with commissions at stake makes it hard for your comments on this thread to be taken as anything other than advertising.

Your point has been made. Please find something else to discuss.

Everybody else, kindly back off this part of the thread and stick with FIREDSoon's original question. Thanks.

 

[Danyon]

I'm just now understanding the blog community I'm not a spammer just answering someone elses question!

The software application and consultation service is $2995.00 or $2495 if you attend a web presentation or Seminar. I recently joined the company as an agent after using the software and yes their is a commission for sales agents of $556 or more depending on your position in the company.

As far as feelings about American Express I guess that's a personal opinion, I just stated some of his creditials. It's not a scam what so ever the program is working for me... Can you achieve similar results without purchasing these types of programs. YES provided you have the discipline to carry it out for 5-7 years... The program helps you manage your finances and you can track and maintain your own results... To be honest I would not have purchased the software myself, but it is gauranteed provided I follow the program.

 

[brewer12345]

Get out the tar and feathers, boys and girls!

 

[Nords]

We get it, Danyon, question asked & answered, thanks, now kindly move along to another subject.

You, too, Brewer.

 

[Danyon]

Sorry, At the risk of sounding like a salesman I will explain briefly how the HELOC process works...

[MODERATOR EDIT]

 

[SecondCor521]

<pops some popcorn and pulls up a chair to watch>

2Cor521