Posted by Deborah Lewellen on 4/6/09 10:15am
Msg #283753

Scare the Heck out of your Banker

http://www.youtube.com/watch?v=H_Zjq2CBiqQ&feature=related
I've been doing a bunch of research on paying off your mortgage way way early.
see the other related you tube videos. This is Hot and I'm excited. We all ready pay more monthly. and my bean counter hubby figured it out that we can pay off in 10yrs. butI just wanted to get this out to you all and others, pass it on, cause it's high time that the middle class start keeping more of their money in their own pockets and NOT keep lining the bank accounts of others. Google pay off your mortgage early and there is alot of info. Just beware too cause there is some scammers out there too.

Reply by Sylvia_FL on 4/6/09 10:41am
Msg #283757

Deborah
This is the same Mortgage Accelerator Program that over the years various notaries have come on here to advertise. The software with this program isn't as expensive as the other one - it's $399 a year and then $49 renewal fees!

Basically it is using a HELOC as your bank account.

I just prefer to make extra payments on my mortgage myself.

Reply by MichiganAl on 4/6/09 10:49am
Msg #283758

Sounds like another UFirst

Make early payments. There, I just saved everyone thousands of dollars on software.

Reply by Sylvia_FL on 4/6/09 11:00am
Msg #283760

Re: Sounds like another UFirst

Would like to clarify, I don't believe Deborah was posting to sell the program and make money off it as others have done. Had that been her intention there would have been a different link.

Reply by MichiganAl on 4/6/09 11:51am
Msg #283772

I agree n/m

Reply by Marian_in_CA on 4/6/09 11:09am
Msg #283761

It's a nice idea, but it takes some serious discipline because you basically have to juggle your mortgage and use a HELOC as your checking account. It can work...and I know somebody who has done it, but it's really complicated and it requires the ability to stay on a strict budget. And I mean STRICT... because if you screw up, you've now got two loans to pay off.

I think that Wells Fargo has something similar to this at:

https://www.wellsfargo.com/mortgage/refinance/loans/descriptions/hama.jhtml

But, it's not just having the account.... it's in how you use it. Basically, all of your money goes into an account that lowers your loan balance, thus lowering your interest expenses and the overall cost of the loan.

Salem Five also has one at:

https://www.salemfive.com/mortgage/ultimateAccount.html

Reply by Deborah Lewellen on 4/6/09 12:00pm
Msg #283775

I'm not selling anything

No, I'm not involved in selling anything like this, I could care less, we all ready pay extra on our mortgage, and will pay off early, I just liked the headline and was hoping to encourage others to do it as well. Keeping more money in our own pockets is my motive.

Reply by Shoshana Roller on 4/6/09 12:29pm
Msg #283778

On the flip side, you give up your interest deduction

Have you factored that in?

Reply by Gary_CA on 4/6/09 1:35pm
Msg #283795

Take my interest deduction...please...

You only lose the interest deduction when the mortage is paid off, not while you're accelerating it. Of course, if you pay it off much quicker you'll pay much less interest, deduct less... pay a little more taxes and be a lot more WEALTHY.

Sample numbers... say the interest portion of your mortgage is $900 and your tax bracket between Fed and State is 33%.

You lose a $300 deduction and a $900 expense, making you net $600 richer.

Reply by Pat/IL on 4/6/09 2:04pm
Msg #283801

Re: Take my interest deduction...please...

Well said, Gary. It's not a dollar for dollar tax credit. You are better off not paying the interest at all. There are some who will argue that you would do better to keep the mortgage, along with the deduction, and invest the dollars that you would have used to pay down elsewhere. That may work for some.

There are also those who prefer a 30-year mortgage with the intent to pay additional principal each month. I don't have the discipline to do that on a regular basis. But, for me, the 15-year fixed rate mortgage keeps me on track to be paid off in 10 years. It generally comes at a 1/4 point less than the 30-year. The increase in the monthly payment is nominal compared to the overall savings when compared to the 30-year.

Reply by Terri/Fl on 4/7/09 1:41pm
Msg #283999

Deborah THANKS for Sharing!!!

Watched the video and will purchase the book. Thanks for the lead!
Terri