Mortgage Accelerator Programs....
As a Mortgage Broker in South Florida (Palm Beach Gardens) I have been bombarded by phone calls, E - Mails and direct Mail about how I can make money off my clients by selling or pushing these type of programs. Now I have done the numbers and this not a post about whether they work or they don't but this is the reality of them. These programs are based off of Home Equity Line of Credit (HELOC).
In Florida, the reality is their is not a Lender out their offering these products! PERIOD!!.. Florida is labeled as a Declining Market and to achieve a First Mortgage is an accomplishment let alone finding one that will be in 2nd position. Ok. I might have over stated the part about know one is offering HELOC's, but the reality is if you don't have high FICO's and a considerable amount of equity in your home it will be very difficult for you and you will be finding yourself just spinning your wheels.
Now again, this is not saying in a perfect world these programs don't work. Right now is not a perfect world however. I have seen many debates about these programs and I am not for them or against them. I do believe in the following:
LICENSED PEOPLE
I have seen another angle that many of these sales people take when people cannot qualify for a HELOC. They suggest a business loan. Again please see above about this. If you are taking out a loan on your business please speak to your CPA first.
If after you review all of this information and you would like to pursue a Mortgage Accelerator Programs please make sure of one thing. The rates on the HELOC's that they are quoting you is the actual rate that you would qualify for.
Again, I am not saying that Mortgage Accelerator programs don't work, but before paying out your hard earn money. (Some as high as $3,500) Make sure the person you are speaking with just did not take a 1 hour sales course. Make sure they are qualified to give you honest answers. Plus you can never go wrong with a second opinion.
For More Mortgage Advice: Mortgage Advice in South Florida
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Full-Time Mortgage Broker in South FL. Palm Beach County. Specializing in Hard Money / Private Money, Foreign Nationals, Jumbo and Super Jumbo Loans. In addition I work with Today's Premiere Lenders.
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Matt.... I agree, that the person should be a mortgage professional selling these. All these people do is get you excited about the program and then turn it over to someone at the company, to wrap up the sale. These same people tell me that if they don't feel that the client doesn't qualify, that they won't give them that program. I have a hard time believing that statement.
In regards to tax advice and financial planning advice.... I semi disagree. Because of my knowledge and experience, I can give some advice on some of these that were mentioned. At least explaining to them some ideas, but my end result is telling them to seek these professionals. I am careful on what I say and how I say it.
Overall, you make some great points.
I'm amazed at what some consumers fall for.
What they need to do is take an envelope, put a stamp on it, put a check for the mortgage payment in it, lick the envelope, take it to the mail box and mail the dang thing, on the first of every month.
That would solve about half the problems out there.
Jeff, I am just always careful about giving Tax, Laws and Financial Planning. It seems everyone in Florida knows a Lawyer. If you are off in anything you can be opening yourself up to a lawsuit. Plus I have found it always better to refer questions like that to a professional.. (Also a great referral source and it gets me off the hook)
Lenn, I think you might be asking to much now...:-) It seems everyone is always looking for a way to short cut the system. And of course earn a commission check at the same time
This is great Matthew, if something sounds to good to be true it usually is. Anyone can pay off their mortgage early if they want to, just apply more to the principal every month, I do.
Matthew, People are always looking for a way to get something for nothing or for a quick fix. I like Missy's approach. Just pay more on the principal each month.
i sat in for a presentation.
the cost $2500.
the key; you must stay on the plan and make the payments as instructed.
also your income needs to be stable or increase.
suggestion. it's tax time! if your home helps you generate additonal refund $$$$$'s consider giving some back as a prepayment and reducing the balance/term/cost.
cost of j's plan $0.00
Missy, Exactly. You don't need any fancy software.. Thank you
Dan, I agree Missy gives great advice.. and by the way it was free..:-)
Jay, I would go one step further.. Jay's Advice...Priceless..:-) Don't you love the approach.. For only $2,500 I can show you how you can save money...ha ha.. Wait how about I save $2,500 now and not buy the product. I won't go into the documents from very well educated and finacial planners on their approach on this subject..
Hey Matt, every year I get something from Chase about this (they service my mortgage) and it sounds interesting. It's basically paying every other week but they have not said 8 years..more like 15-18.
I have not signed up and probably won't...since I won't stay in this house long enough to reap the benefits.
Stephanie, What they are sending you is a bi weekly payment. All that make is one extra mortgage payment a year without feeling the pain. Now it does payoff your mortgage quicker though. This is a softwear program they want you to buy for a commission to show you how to pay off your home faster.
Matt... well, my basics are telling clients what they can write off when it comes to points... depending on what tax bracket they are in. Interest.... the basic stuff that every loan officer should know, when helping a client decided if they should pay points or not. That was why I semi disagreed with some of what you said... I do agree, you could be opening yourself up to a potential lawsuit. But I do know some basic facts to be true... after that, I tell them to seek an accountant or CPA for further advice and information. Same as a lawyer and such. I just wanted to clarify that part.... thanks
In regards to Stephanie's comment, I would love to see that piece of paper that states 15 to 18 years. I could only see them saying this if you had a Pay Option Arm with them. But if it's just a 30 yr fixed rate, then it is 6 to 8 yrs.... and you said that you wouldn't do it since you aren't going to be in the home for so many years? Think of your home as a savings bank. When you sell it, you would just owe less. I don't truly believe in paying down your house quickly... or paying it off quicker, that's if you take that extra money and invest it. If you spend it, then I would suggest paying the extra payment.... just my .02.
Jeff,We can agree to disagree..:-) What I usually do when it comes to tax savings that I know. I tell my clients that they maybe able to receive some tax deduction by choosing this option. However, for the exact amount please consult their CPA.. Just a different tactic..
As you can see... I added more to my comment. And sure, we can have different methods... I just take mine the next step, but not too far.....
Jeff, I did see your added comment.:-) I would think I prefer that I keep my nose clean. Not taking it to a next level.
Matthhew,
Great comments about the MMA...potentially a dangerous product for many borrowers. The problem is the "mailman" is selling this product like you suggested in your blog.
Your comment about licensed professionals is relevant, like Jeff I do give "verified" advice to my clients (via a CPA I consult with) about mortgage interest, but do advise them to speak to a CPA. But I also have my insurance licenses, so technically I can be more then a commission salesman.
I don't know about your state, but in our state you have to be licensed to sell mortgages now, the problem with the Uff product is that they sell HELOC's which fall outside the regulations of our state when it comes to whom is required to be licensed.
Karl, In Florida you don't have to be licensed as long as you work for a direct lender. However, in Florida the truth is your not going to get a HELOC anyway.. accept for the select few people.
Karl, the U1st agents are not selling HELOCS. They are only selling the software. The refer the client to a licensed mortgage broker or bank to implement the HELOC. I am a licensed mortgage broker, and I can give clients advice on mortgages. But a u1st agent, unless he is working for a mortgage broker or is licensed by his state can not give ANY kind of advice on mortgages. All he does is refer the client to a bank or other lender. Once the Heloc has been set up then the software can be set up as well. You need to get your facts straight before making statements you know nothing about. There is even wording in the U1st contract that points out the fact you can not give mortgage advice unless you are in the mortgage business.
Thomas, In Florida as long as they work for a direct Lender they don't have to be licensed. Also, lets be honest how hard is it really to get a license?