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On Apr 23, 4:35 pm, "Jeff Strickland" <c...@verizon.net> wrote:
> "Ashley" <m...@wave-3.com> wrote in message
>
> news:FA7Xh.1290$Wa.205@trnddc08...
>
> > Since this is a mortgage newsgroup, I felt that a post offering a way to
> > pay off notes
> > using current income, without refinancing, or making additional out of
> > pocket payments
> > to principal or forcing the borrower to change his lifestyle would be on
> > topic. Have you
> > noticed that most of the posts on this group are about everything but
> > mortgages.
>
> Your post is on topic, although it is a commercial post that seeks to drum
> up business. Since I'm asking questions about your product, yoiu should
> answer them here so that others might benefit from the answers you give me.
>
> I'm a former mortgage lender, which explains why I know the HELOC 1st
> product. I know lots of stuff about mortgage lending, and the first rule of
> mortgage lending is that the bank wants themoneynot the property. The
> second rule of lending is the only way to pay a note off is to reduce the
> principle, pay more principle than is required and the note can be paid off
> early.
>
> > TheMoneyMergeAccountenables the homeowner to use the bank'smoneyfrom
> > an
> > open ended 2nd position HELOC to cancel future closed end interest in the
> > 1st mortgage.
>
> > Our system's algorithms enable the homeowner to pay off both the 1st and
> > HELOC 2nd
> > in as little as 1/3 the time. That's why we have some customers on
> > schedule to be FREE
> > and CLEAR on a 30 year note in 8 years. It takes some people longer and
> > some people
> > can do it in less time.
>
> The ONLY way to do that is to takemoneyfrom your pocket and throw it at
> the mortgage.
>
> You said there was no refi involved in your plan, but then you went on to
> say that the borrower uses the banks'moneyfrom a HELOC to make payments on
> the 1st. If the borrower hasn't already got a HELOC, then he must refinance
> in order to get one. The bank isn't going to let anybody use itsmoneyfor
> free. Period.
>
> To the extent that one can divert savings dollars from the savingsaccount
> and use them to pay down the mortgageaccount, then one can repay the
> mortgage in short order and not change their standard of living. That much
> is accurate.
>
> My question to you is, since mortgage interest is tax deductable, then
> wouldn't a person that has the ability to repay a 30 year mortgage in 8
> years be better off to get rid of his other debt and keep his mortgage?
> Indeed, if equity appreciation is climbing, then wouldn't a high dollar wage
> earner actually be better off with an Interest Only note for 5 or 10 years
> where he could take the tax advantage of the interest he pays? I am not a tax
> guy, but it occurs to me that in a world of limited deductions, there are
> people that actually benefit from paying mortgage interest. They have to
> live somewhere, they might as well take a deduction on their residence.
>
> > Our customers do not have to know anything about financial mathematics.
> > They just have to
> > follow the system's suggestions and tell it the truth about what they do
> > in the real world.
>
> > We believe that it is better to help people get out of debt than to keep
> > them there forever.
>
> > The math works and so does the MMA. If you would like to see some truth
> > about mortgages,
> > please visitwww.be-mortgage-free.infowhere you may learn more.
>
> > 1st position HELOCS are ok but dangerous for many people. Why do you think
> > one needs
> > very good credit to get one? The MMA works on any mortgage and most people
> > can qualify.
>
> > "Jeff Strickland" <c...@verizon.net> wrote in message
> >news:4OwWh.3539$Fs6.3158@trnddc03...
>
> >> "Ashley" <m...@wave-3.com> wrote in message
> >>news:XK6Wh.273$Fs6.44@trnddc03...
> >>> First of all, I'm not lying and we are notmoneylenders.
> >>> Your discussion about HELOCs is getting at the idea our system employs.
> >>> It works with any kind of mortgage and the homeowner does not refinance
> >>> his existing note. We show the homeowner how to force changes to the
> >>> amortization schedule by making precise equity transfers from HELOC to
> >>> 1st mortgage. But he does not usemoneyout of pocket.
>
> >>> I respect your opinion, but you're simply not sufficiently informed on
> >>> what's available.
>
> >>> If you would like to learn more, then contact me directly.
>
> >> The point of a news group is to discuss topics in an open forum where
> >> participants and observers can gleem information they otherwise might not
> >> have or know. Technically, it is very poor form to sell products through
> >> a newsgroup, indeed many groups forbid commercial postings -- your post
> >> is a commercial post, by the way, because you are soliciting business.
>
> >> It isn't mathematically possible to pay off a mortgage without making
> >> larger payments than the amortization schedule calls for. Period. If one
> >> isn't takingmoneyout of his pocket, then the outstanding balance is
> >> not going down.
>
> >> You can sell a product that pays the mortgage faster but does not change
> >> the buyer's standard of living IF the product captures all of the income
> >> dollars and reduces the principle amount immediately and vastly. The
> >> buyer/borrower still has bills to pay, and he pays them with HELOC
> >> dollars (checks issued at the onset of the mortgage), but the difference
> >> in total income and total outflow remains in the mortgageaccountand
> >> reduces the principle very quickly.
>
> >> Alternatively, the buyer/borrower can change his standard of living by
> >> throwing extra cash at the principle every month and reduce the
> >> outstanding balance that way.
>
> >> The difference in the two methods is that the first is a true Home Equity
> >> Line of Credit in a 1st Trust Deed position that gives the borrower
> >> access to as much as 90% of the equity value of the home without having
> >> to refinance, the latter method locks up the equity into the mortgage and
> >> requires a refi in order to gain access to any equity acquired. The first
> >> method, the HELOC 1st, effectively takesmoneyfrom another savings
> >> vehicle and moves it to the mortgage. The effective APY of the savings
> >> dollars becomes the interest rate of the mortgage. Additionally, daily
> >> living expenses and regular bills that are paid through the HELOC checks
> >> will transfer those bills to mortgage interest, which then become a tax
> >> deduction.
>
> >> Let's say you make $7000 per month. Your mortgage is $3000, and the rest
> >> of your bills -- utilities, credit cards, groceries, car payments,
> >> etc. -- add up to $2000. Your mortgage and bills are $5000, your income
> >> is $7000. These numbers would put $2000 into savings each month. If you
> >> had a HELOC 1st, then you would reduce your principle by that $2000
> >> instead of collect interest on a passbookaccount. Another thing is that
> >> you get paid on the 1st and the 15th, but do not make the house payment
> >> until the 25th. This parks yoru house payment for a minimum of 10 days
> >> not making anymoneyat all. If your pay check was deposited directly to
> >> the HELOCaccount(a requirement of the program, by the way), then your
> >> principle is reduced from the day you get paid, not from several days
> >> after you write the check. You have a lower Average Daily Balance from
> >> which to calculate interest due, and you lower the balance more, and you
> >> pay for stuff with HELOC dollars that become mortgage interest that is
> >> deductable from income taxes.
>
> >> It is a good program for the right kind of borrower.
Jeff,
The Program Ashley is talking about is a refi of sorts. It takes the
second position,
and by doing so, on a smaller sum of money, takes a great deal from
the risk of
using a 1st position variable rate mortgage, such as the ones used in
Australia.
The greatest online source of infomration on the Money Merge Account
Program
is www.thejubileeproject.org, though I'd be happy to address your
comments here
so all readers can gleen what they need to. Thi sprogram does not work
for all Homeowners,
as nothing does for everyone, but I assist people with credit scores
as low as 600-620,
not the 700+ as you remarked concerning the 1st position HELOCs.
The key to this program is the "discretionary income". You are correct
that you
have to apply more to the principle to pay down the balance. However,
the danger with 1st position
situations comes when the interest rates rise, even minimally. A
single point increase can
suck away a persons discretionary income and open the possibility of
losing your home.
The second position HEloc, however, used in connection with our
proprietary software and
ongoing personal support, allows the homeowner to shield themselves
from that risk.
We are able to use smaller amounts of money, use the HELOC as a
primary checking account,
where we make payments to the line of credit and pay our bills from
the line of credit. This
then uses the paychecks to hold down the balance so the monthly
finance charge is a minimum,
which the discretionary income eats away at the actual balance. Of
course you still have to pay
the money back, and of course it's going to come out of your pocket.
However, it is controlled
and manageable with the software.
This process allows you to use the Banks money at a reduced interest
charge (because we are
using a HELOC with an interest only payment option, open ended
interest and a variable rate, so
we can make multiple payments per month), and the Bank is only looking
for a finance charge. Our
paycheck becomes that finance charge, as the discretionary income eats
away at the actual balance.
Now, the main question poeple ask is: "What is 'discretionary
income'?" It's what you have at the
end of the month which you would normally put in savings. You say you
do not have any? Most people do.
Do you have credit cards? Car loans? Student loans? Medical bill
payments? Thats discretionary
income, IF you have enough equity in your home to swallow up that debt
in the 2nd position HELOC.
Then the freed up monthly payments become the discretionary income,
which feeds the program.
I think what Ashley meant was you do not have any out of pocket expense
to START the MMA Program
(we take it out of the HELOC), you do not have to finance your PRIMARY
mortgage, but he was incorrect
about using the Banks money and NOT our own. We use the Banks money at
a reduced interest rate,
or interest free, then have to pay it back...but we can do it over
time, using this phenominal program.
Hope that helps you and the readers of this post.
I suggest you check out www.thejubileeproject.org and research this
option before making judgements.
God Bless.
Jaime Buckley
Co-Founder
The Jubilee Project.org
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Re: Equity Acceleration
