Home › Forums › Financial Markets/Economics › Payoff Mortgage in 1/3 the time without doing anything different?
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anxvariety.
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November 4, 2007 at 6:20 PM #10810November 4, 2007 at 6:38 PM #95441
Eugene
ParticipantIMO it’s the same thing as paying as much as possible for your mortgage every month, not saving any money, and keeping a HELOC open in case of emergencies.
The idea of paying off your mortgage with a HELOC is ridiculous, interest on your mortgage is typically lower than on a HELOC.
November 4, 2007 at 6:38 PM #95500ParticipantIMO it’s the same thing as paying as much as possible for your mortgage every month, not saving any money, and keeping a HELOC open in case of emergencies.
The idea of paying off your mortgage with a HELOC is ridiculous, interest on your mortgage is typically lower than on a HELOC.
November 4, 2007 at 6:38 PM #95505ParticipantIMO it’s the same thing as paying as much as possible for your mortgage every month, not saving any money, and keeping a HELOC open in case of emergencies.
The idea of paying off your mortgage with a HELOC is ridiculous, interest on your mortgage is typically lower than on a HELOC.
November 4, 2007 at 6:38 PM #95515ParticipantIMO it’s the same thing as paying as much as possible for your mortgage every month, not saving any money, and keeping a HELOC open in case of emergencies.
The idea of paying off your mortgage with a HELOC is ridiculous, interest on your mortgage is typically lower than on a HELOC.
November 4, 2007 at 6:41 PM #95450ucodegen
ParticipantA basic check confirms that this is BS. In their own example, the Mortgage loan is 6.5% but the HELOC is 8%. You are paying the mortgage with HELOC money, meaning you are paying down a loan rate of 6.5% with money from a loan rate of 8%. (Paying down cheaper money with more expensive money.) You really want to do the reverse.
By the way, many credit unions as well as brokerages have checking accounts that are interest bearing. Even some banks do to. Yield is not always that great, but you should use 30day, 60day, 90day CDs as well as Money markets etc for any amount over 1month, 2month… etc needs.
They are trying to sell this POS software. The interest saved is really interest saved compared to not paying the mortgage payment that month(which is not advised). One can easily do this with an eXcell spreadsheet. You will actually save more money by prepaying one month (which is what they sort of state the software as costing) than buying this POS.
November 4, 2007 at 6:41 PM #95508ParticipantA basic check confirms that this is BS. In their own example, the Mortgage loan is 6.5% but the HELOC is 8%. You are paying the mortgage with HELOC money, meaning you are paying down a loan rate of 6.5% with money from a loan rate of 8%. (Paying down cheaper money with more expensive money.) You really want to do the reverse.
By the way, many credit unions as well as brokerages have checking accounts that are interest bearing. Even some banks do to. Yield is not always that great, but you should use 30day, 60day, 90day CDs as well as Money markets etc for any amount over 1month, 2month… etc needs.
They are trying to sell this POS software. The interest saved is really interest saved compared to not paying the mortgage payment that month(which is not advised). One can easily do this with an eXcell spreadsheet. You will actually save more money by prepaying one month (which is what they sort of state the software as costing) than buying this POS.
November 4, 2007 at 6:41 PM #95513ParticipantA basic check confirms that this is BS. In their own example, the Mortgage loan is 6.5% but the HELOC is 8%. You are paying the mortgage with HELOC money, meaning you are paying down a loan rate of 6.5% with money from a loan rate of 8%. (Paying down cheaper money with more expensive money.) You really want to do the reverse.
By the way, many credit unions as well as brokerages have checking accounts that are interest bearing. Even some banks do to. Yield is not always that great, but you should use 30day, 60day, 90day CDs as well as Money markets etc for any amount over 1month, 2month… etc needs.
They are trying to sell this POS software. The interest saved is really interest saved compared to not paying the mortgage payment that month(which is not advised). One can easily do this with an eXcell spreadsheet. You will actually save more money by prepaying one month (which is what they sort of state the software as costing) than buying this POS.
November 4, 2007 at 6:41 PM #95523ParticipantA basic check confirms that this is BS. In their own example, the Mortgage loan is 6.5% but the HELOC is 8%. You are paying the mortgage with HELOC money, meaning you are paying down a loan rate of 6.5% with money from a loan rate of 8%. (Paying down cheaper money with more expensive money.) You really want to do the reverse.
By the way, many credit unions as well as brokerages have checking accounts that are interest bearing. Even some banks do to. Yield is not always that great, but you should use 30day, 60day, 90day CDs as well as Money markets etc for any amount over 1month, 2month… etc needs.
They are trying to sell this POS software. The interest saved is really interest saved compared to not paying the mortgage payment that month(which is not advised). One can easily do this with an eXcell spreadsheet. You will actually save more money by prepaying one month (which is what they sort of state the software as costing) than buying this POS.
November 4, 2007 at 6:49 PM #95457Jumby
ParticipantWow, I expect more out of the piggs….so quick to make a call with basic assumptions..
http://www.wealthbuildinghome.com/MMA-GEdwardGriffinArticle.pdf
Read page 4….(actually read the whole thing)
November 4, 2007 at 6:49 PM #95516ParticipantWow, I expect more out of the piggs….so quick to make a call with basic assumptions..
http://www.wealthbuildinghome.com/MMA-GEdwardGriffinArticle.pdf
Read page 4….(actually read the whole thing)
November 4, 2007 at 6:49 PM #95521ParticipantWow, I expect more out of the piggs….so quick to make a call with basic assumptions..
http://www.wealthbuildinghome.com/MMA-GEdwardGriffinArticle.pdf
Read page 4….(actually read the whole thing)
November 4, 2007 at 6:49 PM #95532ParticipantWow, I expect more out of the piggs….so quick to make a call with basic assumptions..
http://www.wealthbuildinghome.com/MMA-GEdwardGriffinArticle.pdf
Read page 4….(actually read the whole thing)
November 4, 2007 at 6:59 PM #95465Raybyrnes
ParticipantThe system factors that you are getting 0 percent on your money sitting in the bank. Right now with little efort you can get 5%.
It also figures that the HELOC debt is going to carry a lower interest rate than what you could get on other credit lines. I have carried over 20K in credit card debt for nearly 5 years and have never paid interest on any of it. Lot of 0% offers out there.
Last but not least I am wondering why I would pay 1000 dollars for a software program when if my goal was to pay my mortge off early I could simply send in an additional payment each month.
November 4, 2007 at 6:59 PM #95524ParticipantThe system factors that you are getting 0 percent on your money sitting in the bank. Right now with little efort you can get 5%.
It also figures that the HELOC debt is going to carry a lower interest rate than what you could get on other credit lines. I have carried over 20K in credit card debt for nearly 5 years and have never paid interest on any of it. Lot of 0% offers out there.
Last but not least I am wondering why I would pay 1000 dollars for a software program when if my goal was to pay my mortge off early I could simply send in an additional payment each month.
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