Mortgage accelerator programs

What do you guys think of them? The truth in equity program sounds almost too good to be true.

 

I'd go with the Large Hadron Collider.

 

Well, you know what they say about something that sounds to good to be true.

 

Complete rip. Most of these deals are multi-level marketing programs (so you get the AMWAY factor to begin with - you know bug eyed, too-friendly person approaches you in the mall and begins to ask you random questions about your life as if they are truly interested in you) and they want to charge $3500 for you to buy their software that merely teaches you to live on less than you make. Here's an idea, do a budget and live on less than you make without paying someone $3500 and use that $3500 towards your mortgage.

I did see someone do a comparison of using their software versus paying off your mortgage yourself and in the end, their program will come out ahead by like $30 or so just due to how the timing works but, of course, that is before you factor in that you spent $3500 to come out ahead $30. It's a MLM gone crazy basically.

 

Just add a few bucks to your payment...You are paying on equity so thus your interest will be less. You can do this on your own. Even if it's tight, even 20 extra bucks will add up in the end.

 

True. If I remember I usuallly just take my monthly payment and divide it by 12 and add that amount to each monthly payment. Sorta of does the same thing. Banks that charge you to do that are just stealing money.

 

There are a couple of differnet things that he may be referring too. There is a mortgage accelerator that your mortgage company will offer and they will just simply do what VA talked about. It's the bi-weekly payment deal but the trick is that it makes 13 payments a year rather than 12. Heck, you can do that yourself without paying them anything.

There is also a new thing going around where they sell you a piece of software and it sets up a HELOC (essentially) and all expenses come from the HELOC. Then, your paycheck goes to pay off the HELOC and what is left over is sent to your Mortgage. For this software, you pay $3500. It's all the rage in Australia apparently. It's a very Amway-ish deal over here.

Edit: I think they are referred to as Money Merge Accounts

 

So Amyway works by getting people under you. You buy it and try to get more people interested that then something from them goes toward you mortgage? I'm not getting it.

 

No, you sell the $3500 software. Then you get people underneath you selling the $3500 software to others. On and on. It's a MLM setup which invites the Amway types promising that you can make 100K by working 10 hours a week.

 

Sounds like any other Pyramid scheme.