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Indeed you are very well informed.
I just funded my first loan on this product and have 5 more in the
pipeline--all referred by the first client.
The credit score needed is 680 and there is a Stated option, max LTV is 90%
but it works best at 80% LTV
This is the first loan product that has attractive terms, flexibility, and
kills the debt quickly. Usually in 17-22 years for the same payement as a
30 year fixed loan. In other words someone would have to have a 30 year
fixed rate at 3.5% in order to beat this program.
Thanks for listening......
"Jeff Strickland" <crwlr@yahoo.com> wrote in message
news:BuSdnb1zc6XM_I7YnZ2dnUVZ_sadnZ2d@ez2.net...
> 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?
