http://www.u1stfinancial.com/portals/0/media/mma100.html




Watch this and tell me what the catch is?

Its about 30 minutes long but claims to save you a ton of money on a 30 year note that also gets paid of in 12 years. The basic principal is using your HELOC to pay the mortgage down somehow. You basically run all of your banking needs thru the heloc including depositing your paychecks into it..

The program uses phrases like, open end loan and closed end loan.

That's been around for about 4 years. It depends on your average daily balance in your checking account. I didn't see the link but if it's the same thing, it basically works so that you direct deposit all your paychecks into your HELOC, and write checks for all your bills out of your HELOC. Your HELOC is basically a checking account. Instead of your money sitting in a real checking account doing nothing, it pays down your mortgage principle for a month, making the interest accrued on your mortgage slightly less that month, so your mortgage payment is more principal/less interest than it would normally be. Month after month, year after year, your mortgage will amortize faster and you'll be paid off sooner. The claims of paying a 30 year off in 12 years is exaggerated unless you keep alot of money in your checking account. If you have that kind of money laying around, it's best just to prepay the mortgage the good old fashioned way. Also, HELOCS are adjustable and usually carry an annual fee.

Prepay debt (heloc) with whole paycheck, run heloc back up to pay bills, and repeat 360 times. It may be a good way for the self-employed to shelter money but I'm not sure. Basically, that leftover money you have in your checking account every month is serving to lower your average daily balance on your debt, making the interest portion of your payment a little lower and your principle a little higher.

I'll watch the video in a minute and see their take on it. Their's might be different or magical.

Jerms went to a seminar on this same type thing a week ago. Says it opened his eyes. Then they tell you that you can buy their software to do this for $3500.

Exactly, Jerms may have been at the same semenar* my buddy attended

I just watched it. What a shitty pitch. You could do that with a credit card.

I'm going to kill all of you

It's not a good deal unless they throw in the timeshare at Hilton Head.

How so? I've got tons of those......

No one took the softball pitch.

Max out your credit cards to pay down your mortgage. It's the opposite of a debt consolidation loan.

Then, don't make a payment to any of your credit cards for at least 4 months. Then settle with each of them for 50%-60%.

Or, keep rolling the cards over to zero interest initial rates, whatever. And keep paying your checks into the credit cards, interest on them is also calculated like a heloc, not a mortgage. Especially if you make electronic bi-monthly payments on the credit cards.

Ball 1.

Good job Maddox.

Not really, Credit card cash advances carry high interest rates and transaction fees

You don't have to pull a cash advance, you can call your mortgage company and have the apply the payment to the card.

I`m back

I'm going to borrow myself out of debt.....just like the disapearing snake that that vanished not long after he started swallowing his tail.

Jimislesc

We bought a house in Feb. We got robbed.