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Yes, this is a new product in the USA, but the Brits and the Aussies (New
Zeland too, I think) have been using this product for going on 20 years.
It's a HELOC 1st Trust Deed. You must have a high FICO score (I recall the
requirement as 740, or maybe 720) to qualify. All of your income gets
deposited into the HELOC account and reduces the principle from the first
day. Then, as the bills come in, you write HELOC checks to pay them, raising
the balance again, but your income exceeds your outflow so the program works
very well. If a property comes along that you want to buy, and you have
enough equity in your mortgage balance, then you simply write a check.
The beauty of the program is that you don't need to continually qualify for
your equity dollars that are burried in your standard mortgage, your equity
is always available to you in your checking account.
There are obvious pitfalls of such a mortgage program, but the hige FICO
scores tend to qualify only those that understand how to use money.
I went to a seminar in California about a year ago, and I recall the company
offering the program as GNC Mortgage. I can hook you up if you want ...
</top post, no snippage>
"Allen Greenspan" <allengreenspan@juno.com> wrote in message
news:WYlQg.69$BC6.16@fed1read01...
> I am just curious if anyone has seen a mortgage product that allows one to
> deposit their checking and savings balances into their mortgage and have a
> lower mortgage balance that is accruing less interest charges. This would
> mean paying off the mortgage years sooner without changing current
> spending.
>
> Furthermore, if that product allowed the borrower to draw money out
> without fees or charges, thus, unlocking the equity in the house. No more
> need to refinance if the credit cards get maxed out, or if you need to buy
> the kid a car or pay for college, and when life circumstance changes and
> now there will be no need to refinance every couple years.
>
> On top of that, by using this strategy, one would pay off the mortgage
> balance 7-12 years sooner than if they had a low rate 30 year fixed
> mortgage. And I mean if your mortgage is over 3.5% or 4% on a 30 year
> fixed rate mortgage, then this product would cost less and offer more
> flexibility and pay off quicker. Keep in mind this only works with folks
> that are in control financially and have credit and assets.
>
> Someone pinch me, this thing is on fire--my phone is going off and I have
> not spent a dime on advertising, ok enough about me.
>
> Has anyone heard of any company offering such a loan?
>
> Thanks for listening,,,,,,,,,
>
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Re: Marriage of Checking/Savings and Mortgage?
