Posted on: 07th Nov, 2007 04:50 pm
i am interested in the homeownership accelerator program offered throuhg cmg, but cannot find much information on it. sounds to good to be true. actual unbiased customer reviews would be great.
Why are you guys so against this product. The home ownership accelerator loan is not the same thing as UFF. The key benefit is that the loan is flexible. Your money remains relatively liquid and should you lose income, you will not default with enough equity in the house. I think CMG should not highlight the quick payoff as much as they are and needs to focus on showing people the features this product has.
Hi Victor,
These are just the personal point of views of the above posters. BTW why do you think it is helpful. Can you show me any points?
These are just the personal point of views of the above posters. BTW why do you think it is helpful. Can you show me any points?
No payments. Just use as bank account. Keep interest low with lower principal balance but full access to the money up to line of credit amount
(which is 90% of home value at the time of financing). Those with great credit but irregular or inconsistant incomes such as builders, small business owners, investors, agents, and commisioned sales persons can greatly benefit from this product. And i would definately buy down the rate to as low of a margin as possible.
(which is 90% of home value at the time of financing). Those with great credit but irregular or inconsistant incomes such as builders, small business owners, investors, agents, and commisioned sales persons can greatly benefit from this product. And i would definately buy down the rate to as low of a margin as possible.
Thank you Victor for sharing the information with us :)
My only concern is how much the closing costs are. I have looked up the rates and the Libor is currently 2.709.
You pay points for buying down the margin. Starts at .375 points for a margin of 3.25 and can be as high as 5.5 points for a margin of .75.
The one month Libor obviously can change monthly so you can also pay a little higher points to cap the first 3 or 5 years to a maximum increase of 1% over your original rate. The life time cap is 5% over start rate.
There is also points charged for LTV (I guess the line of credit divided by the appraised value). You pay no points on up to 75% and most points on up to 90%.
This is all figured on Primary residence, as i am sure it's probably higher for second homes. FICO scores must be min 680 and i think points are higher if not at least 700. This is obviously targeting the most credit worthy borrowers.
Points can range from .375 all the way to 9. Seems very high to pay 9 points, but i wonder if its worth it to have a LOC up to 90% of value (at time of closing) start rate of 3.459 with a cap in the 1st 5 years not allowing rate to exceed 4.459 and a lifetime (30 yr) cap of 8.459.
Despite the closing costs, i still think this could be a great tool for building wealth and a portfolio of investment properties.
Any thoughts? Am I a #s nerd?
You pay points for buying down the margin. Starts at .375 points for a margin of 3.25 and can be as high as 5.5 points for a margin of .75.
The one month Libor obviously can change monthly so you can also pay a little higher points to cap the first 3 or 5 years to a maximum increase of 1% over your original rate. The life time cap is 5% over start rate.
There is also points charged for LTV (I guess the line of credit divided by the appraised value). You pay no points on up to 75% and most points on up to 90%.
This is all figured on Primary residence, as i am sure it's probably higher for second homes. FICO scores must be min 680 and i think points are higher if not at least 700. This is obviously targeting the most credit worthy borrowers.
Points can range from .375 all the way to 9. Seems very high to pay 9 points, but i wonder if its worth it to have a LOC up to 90% of value (at time of closing) start rate of 3.459 with a cap in the 1st 5 years not allowing rate to exceed 4.459 and a lifetime (30 yr) cap of 8.459.
Despite the closing costs, i still think this could be a great tool for building wealth and a portfolio of investment properties.
Any thoughts? Am I a #s nerd?
Hi Victor,
Have you used this product? seems like you're well aware of it. The closing costs will vary from state to state, also from lender to lender.
"There is also points charged for LTV (I guess the line of credit divided by the appraised value)"
Yes, the LTV is the ratio of the loan amount you can get divided by the appraised value of your home.
"i still think this could be a great tool for building wealth and a portfolio of investment properties. "
Well, I haven't used it, so i can't say it's a great tool for building wealth but i do find a lot of people using it. But their experiences, well it's what they'll have to speak about.
Hope this helps...
God bless you.
Samantha
Have you used this product? seems like you're well aware of it. The closing costs will vary from state to state, also from lender to lender.
"There is also points charged for LTV (I guess the line of credit divided by the appraised value)"
Yes, the LTV is the ratio of the loan amount you can get divided by the appraised value of your home.
"i still think this could be a great tool for building wealth and a portfolio of investment properties. "
Well, I haven't used it, so i can't say it's a great tool for building wealth but i do find a lot of people using it. But their experiences, well it's what they'll have to speak about.
Hope this helps...
God bless you.
Samantha
Hi Samantha,
I have not used this product. I just do a lot of research before i proceed. I think it might be compulsive behaviour.
Either way, my internet searches tell me a lot about the product, even the sales techniques that brokers should use for this product.
What i would really like, but have a hard time locating, is feedback from current and former HOA customers (besides what the CMG websites have).
Do you know of any sites, forums or blogs which may include customers of the Home Ownership Accelerator?
I have not used this product. I just do a lot of research before i proceed. I think it might be compulsive behaviour.
Either way, my internet searches tell me a lot about the product, even the sales techniques that brokers should use for this product.
What i would really like, but have a hard time locating, is feedback from current and former HOA customers (besides what the CMG websites have).
Do you know of any sites, forums or blogs which may include customers of the Home Ownership Accelerator?
Hi Victor, did you check out all the feedback given by community member regarding the HOA. I hope it will give you some idea about this product - the good or the bad aspects.
Hi Ryan,
I have looked at the feedback in the various forums. I have learned a great deal about this product and still like the concept. I was hoping to hear from customers who use this and see their experiences with it.
Hopefully i can find some independent commentary outside of their website from HOA customers.
I have looked at the feedback in the various forums. I have learned a great deal about this product and still like the concept. I was hoping to hear from customers who use this and see their experiences with it.
Hopefully i can find some independent commentary outside of their website from HOA customers.
Hey Victor,
I personally feel that it not very helpful for the home owners. It seems that you are paying off the debt early but at the end you are paying nothing less than what you actually would pay to the lender.
I personally feel that it not very helpful for the home owners. It seems that you are paying off the debt early but at the end you are paying nothing less than what you actually would pay to the lender.
Hi Niicss,
I'm not sure i follow. If the mortgage is paid off early, then there is no more interest to pay, until you borrow from the line of credit again.
Duplicate content deleted as per the forum rules.
I'm not sure i follow. If the mortgage is paid off early, then there is no more interest to pay, until you borrow from the line of credit again.
Duplicate content deleted as per the forum rules.
Hi Everyone:
The amount of mis-information in this thread is discouraging. It is particularly sad that so-called "professionals" in the industry are bashing a product they clearly do not understand (Eric and Eugene, among others, I'm talking to you).
I closed a CMG Home Ownership Accelerator earlier this year, and I absolutely love it. We have already recouped the up-front costs of the loan, and our mortgage principal balance is now lower that it's ever been. If you have good credit are are financially disciplined, it is a product that you really should consider. LIBOR is ridiculously low right now, and by the time it goes up (if it does go up) our principal balance will have reduced so much it won't even matter. I would recommend that anyone interested in paying their house off quckly give it a look...just Google "CMG Home Ownership Accelerator."
If you'd rather keep your head in the sand along with the mortgage "professionals" who posted earlier on this thread, you can do that too...
Dave
The amount of mis-information in this thread is discouraging. It is particularly sad that so-called "professionals" in the industry are bashing a product they clearly do not understand (Eric and Eugene, among others, I'm talking to you).
I closed a CMG Home Ownership Accelerator earlier this year, and I absolutely love it. We have already recouped the up-front costs of the loan, and our mortgage principal balance is now lower that it's ever been. If you have good credit are are financially disciplined, it is a product that you really should consider. LIBOR is ridiculously low right now, and by the time it goes up (if it does go up) our principal balance will have reduced so much it won't even matter. I would recommend that anyone interested in paying their house off quckly give it a look...just Google "CMG Home Ownership Accelerator."
If you'd rather keep your head in the sand along with the mortgage "professionals" who posted earlier on this thread, you can do that too...
Dave
Welcome Dave.
Nice to see you have share your view point with the community. But I would like to ask you if this program can help the borrowers to pay off the mortgage soon then why so many people now suffering and facing foreclosure?
You have said that "If you have good credit are are financially disciplined, it is a product that you really should consider." So only people with good credit can use this program and what do you mean by good credit?
Nice to see you have share your view point with the community. But I would like to ask you if this program can help the borrowers to pay off the mortgage soon then why so many people now suffering and facing foreclosure?
You have said that "If you have good credit are are financially disciplined, it is a product that you really should consider." So only people with good credit can use this program and what do you mean by good credit?
Hi Niicss:
People lose their homes to foreclosure because they can't make their house payments, because they either 1) lost their source of income or 2) chose a bad loan. That is a completely different subject.
The CMG Home Ownership Accelerator will only work for people who live within their means, so potential clients are carefully screened and must have a good credit score. You would have to contact CMG to find out what the minimum score is.
Dave
People lose their homes to foreclosure because they can't make their house payments, because they either 1) lost their source of income or 2) chose a bad loan. That is a completely different subject.
The CMG Home Ownership Accelerator will only work for people who live within their means, so potential clients are carefully screened and must have a good credit score. You would have to contact CMG to find out what the minimum score is.
Dave
Hey Dave,
I feel these types of programs make people to concentrate to only one particular financial obligation. But that can create some problems as they may have some other obligations too like a car loan or student loan. So do you think a general people with medium income can afford these types of programs?
I feel these types of programs make people to concentrate to only one particular financial obligation. But that can create some problems as they may have some other obligations too like a car loan or student loan. So do you think a general people with medium income can afford these types of programs?