Another too good to be true?
01-30-2009, 07:49 PM
#1
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Another too good to be true?
01-30-2009, 08:18 PM
#2
Originally Posted by NismoPick
If it sounds too good to be true... it is.
Here's a funny read: http://www.mortgagenewsdaily.com/wik...celeration.asp
At the core of most Mortgage Accelerator tactics is an interest only loan.
They are the programs that dropped our housing industry into the crisis it's in right now.
Simple answer: do research.
01-31-2009, 06:24 AM
#3
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Originally Posted by NismoPick
Watch the news lately???? People wanting to be dept free or get rich quick by just snapping their fingers, are also ripe to be "taken to the cleaners". I did a quick google search for you and found many "interesting" things. Many of these companies are catering to the morons who don't know anything about mortgages, so anything they say sounds good.
Here's a funny read: http://www.mortgagenewsdaily.com/wik...celeration.asp
Do you know what an "interest only" loan is? Do you know what an ARM is?
They are the programs that dropped our housing industry into the crisis it's in right now.
Simple answer: do research.
Here's a funny read: http://www.mortgagenewsdaily.com/wik...celeration.asp
Do you know what an "interest only" loan is? Do you know what an ARM is?
They are the programs that dropped our housing industry into the crisis it's in right now.
Simple answer: do research.
At the core of most MA tactics is an interest only loan. The original Australia loan employs just one interest only loan. Some companies tout an interest only in conjunction with a 30 year fixed, while others want you to buy expensive mortgage acceleration software all to manage a simple concept: SIMPLE INTEREST. As soon as the banks offered a loan program to clients that was based on simple interest, they opened the door for you to turn the tables on them and beat them at their own game (well, you'll never really beat them, but you can give them about 60% less money than you would otherwise).
But wait! If you wanted to do that, you'd have to know exactly how much money you'd spend each month and when. What if there was a way to put ALL your money right into your mortgage so that you could PREVENT it from accruing interest on whatever amount you just paid down AND you could still get access to your money to pay bills, buy dinner, do whatever with the same liquidity as cash? Well, it does exist, and it has for a long time. It's at the core of any good MA program, and when executed with discipline, IT WORKS.
Though it's a great thing, MA is not a magic pill you can take to make your mortgage go away. It still requires discipline and education, but you can, in essence, "beat the system." MA will be bad for you to the same extent that you don't stick with the plan (i.e. not putting your paycheck directly in the HELOC, or spending more money than you make). I don't recommend that anyone try to figure out how to do it on their own without consulting a company that has experience with MA. There are a lot of pitfalls. The nice things about the pitfalls is that they won't leave you any worse off than if you had simply done the average debt consolidation refinance. At least an MA plan gives you a tool that will allow you to do something positive with your mortgage.
If you have the discipline to execute the plan, you will be well rewarded.
Now as I've stated already, I'm not the most sharpest tool in the shed so please be patient with me. 
I know what an ARM is and I don't believe the system itself is the only reason why we are in the mortgage crisis but the people who have barrowed more then what they could handle, or from simple greed. There are also unethical loan practices by the lenders themselves. For example suggesting ARM finances over the tradition 30 or 15 year loans to people who can't handle the loans due to higher commission fee for the exotic loans.
After all responsible people have used ARM and had their homes paided off in short amounts of time.
I'm posting this to learn or to be corrected so I'm not challenging your opinion but rather asking for more info/help.
01-31-2009, 04:21 PM
#5
^^^ Exactly.
Droptop, I didn't mean to come off rude in my post. I was in a hurry last night.
Anyway, Like ZHag said, the more confusing it is, the more likely it's a scam. Mortgages aren't very simple in the first place, but if you are really considering a mortgage or refinance, talk to your local bank, or loan office. The internet is full of scammers.
Droptop, I didn't mean to come off rude in my post. I was in a hurry last night.
Anyway, Like ZHag said, the more confusing it is, the more likely it's a scam. Mortgages aren't very simple in the first place, but if you are really considering a mortgage or refinance, talk to your local bank, or loan office. The internet is full of scammers.
01-31-2009, 05:15 PM
#6
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Originally Posted by NismoPick
^^^ Exactly.
Droptop, I didn't mean to come off rude in my post. I was in a hurry last night.
Anyway, Like ZHag said, the more confusing it is, the more likely it's a scam. Mortgages aren't very simple in the first place, but if you are really considering a mortgage or refinance, talk to your local bank, or loan office. The internet is full of scammers.
Droptop, I didn't mean to come off rude in my post. I was in a hurry last night.
Anyway, Like ZHag said, the more confusing it is, the more likely it's a scam. Mortgages aren't very simple in the first place, but if you are really considering a mortgage or refinance, talk to your local bank, or loan office. The internet is full of scammers.
No worries man. I didn't take anything as rude.
You are right about the scams on the net and in life in general. I was just trying to get some feedback from different people. Yours was appreciated. It was to the point and precise. The link just confused me a little and that's all.
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