Posted on: 10th Jul, 2008 10:28 am
I would like to pay my mortgage down as fast as I can. I would like to accelerate my payments within the 30 day schedules. Can I make principal payments daily to the mortgage company electronically and vastly lower the total amount of interest and pay off my loan as much as three times faster.
I cant think of any lenders that offer daily auto withdrawals from your account but most will offer a byweekly payments. Figure out how much you are willing to pay every 2 weeks and call up your lender. There might be a fee to enroll in sucha a program. You will be making 26 byweekly payment in a year giving you extra payment each year in addition to any additional ammount you will pay towards your payment each month. Make sure to find out how often your lender will recalculate and reammortise your mortgage to reflect your additional payments. And have them send you the accelerated ammortisation schedule which reflects the additional payments you will be making.
So are you saying these mortagage accelarator programs that say use their program with same money and you can reduce your interest and length of loan are all fraudulent.
Hi Michael.
Welcome to the forum.
I agree with Eugene that these mortgage accelerator programs are not very helpful. now if you want to pay off the mortgage early then talk with your lender and try to pay extra on your principal with your monthly mortgage payments. But for that you will have to talk with your lender and make a plan accordingly.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I agree with Eugene that these mortgage accelerator programs are not very helpful. now if you want to pay off the mortgage early then talk with your lender and try to pay extra on your principal with your monthly mortgage payments. But for that you will have to talk with your lender and make a plan accordingly.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Michaeltracht's second post is pretty much "on track" although a bit overstated. These "mortgage accelerator" programs are making another attack on the Internet blogs. VERY slick web video presentation but the prospective mark should think it though.
Strangely these programs encourage you to obtain additional debt, usually a HELOC, to use as your checking account. You could do exactly the same thing as a mirror image with a money market checking account ¦ but then there would be no "set up" fee and (possibly) a commission for your friendly salesman.
There is an ounce of truth in the program in that with most mortgages interest is charged in arrears on a monthly basis no matter when the payment is actually received. This typically gives the mortgage borrower a 16-day "free ride" relative to how interest is earned on a money market account or charged on a HELOC. Works best if you are able to hand deliver your mortgage payment to the lender. All you need is to have one late change and all your hard work at "timing" is shot and remember that it takes a long time to recover that initial fee you paid for this "sophisticated used in other (implication “ more intelligent) countries.
It's a slick sales pitch and rather than waste your money, I suggest you concentrate on the structure of the pitch so you wont be sucked into the next time someone says "psst ¦ I've got a win-win stock tip."
Strangely these programs encourage you to obtain additional debt, usually a HELOC, to use as your checking account. You could do exactly the same thing as a mirror image with a money market checking account ¦ but then there would be no "set up" fee and (possibly) a commission for your friendly salesman.
There is an ounce of truth in the program in that with most mortgages interest is charged in arrears on a monthly basis no matter when the payment is actually received. This typically gives the mortgage borrower a 16-day "free ride" relative to how interest is earned on a money market account or charged on a HELOC. Works best if you are able to hand deliver your mortgage payment to the lender. All you need is to have one late change and all your hard work at "timing" is shot and remember that it takes a long time to recover that initial fee you paid for this "sophisticated used in other (implication “ more intelligent) countries.
It's a slick sales pitch and rather than waste your money, I suggest you concentrate on the structure of the pitch so you wont be sucked into the next time someone says "psst ¦ I've got a win-win stock tip."