[ucodegen]

You love calling BS, but you calling it so quickly all the time is BS.
I call it because you are full of it, wanting to accept your numbers without proof even though the violate basic mathematical principles.

You then attempt to ingrate with us by trying to sound like you are like us.

For example, let’s say this “program” actually works for a minute (I’m not convinced either way yet).

Wrong approach. You assume it doesn’t and then you run numbers to test it. You then compare the results with methodologies other people here have mentioned are similar. You still have yet to produce sample data from said program.

It would NOT be smart to pay off the mortgage early (if you could). The best thing to do would be continue to pay the monthly payment for 10 years (1/3 of a 30 year mortgage) claiming the deduction during that time, at only 6% (give or take) and putting that lump sum money elsewhere (assuming it could beat 6%).

You just proved you don’t know the math. As you do an accelerated pay-down of the mortgage.. by any means, your tax deduction reduced because the deduction is based upon the amount of interest on remaining principle. Mortgage companies flatline the payments to make them easier (and make it last longer). If you took the approach of paying 6% interest on balance and 3% of remaining principle monthly payments would be decreasing month to month (because the principle will be decreasing). The other point, made by ‘no_such_reality’ is that these programs work by doing pre-payments, using the HELOC to cover any emergencies. If there is an HELOC drawdown, the base mortgage monthly gets covered first, HELOC excess gets covered next and any balance goes to prepay the mortgage.

[ucodegen]

Average Budget is disposable income used to “budget” and prepays the loan balance. It isn’t “spent” because they say it’s still available a HELOC.

Yes.. and they fail to mention that the balance of the HELOC can not increase from month to month for the program to be successful!

[ucodegen]

Average Budget is disposable income used to “budget” and prepays the loan balance. It isn’t “spent” because they say it’s still available a HELOC.

Yes.. and they fail to mention that the balance of the HELOC can not increase from month to month for the program to be successful!

[ucodegen]

Average Budget is disposable income used to “budget” and prepays the loan balance. It isn’t “spent” because they say it’s still available a HELOC.

Yes.. and they fail to mention that the balance of the HELOC can not increase from month to month for the program to be successful!

[ucodegen]

Average Budget is disposable income used to “budget” and prepays the loan balance. It isn’t “spent” because they say it’s still available a HELOC.

Yes.. and they fail to mention that the balance of the HELOC can not increase from month to month for the program to be successful!

[ucodegen]

If there was a way to truly pay a mortgage off in 1/3 the time by revolving debt and savings it would be more prevalent than a video on youtube.

touche’

Hey, youtube is the new high-quality advertising!!!

[ucodegen]

If there was a way to truly pay a mortgage off in 1/3 the time by revolving debt and savings it would be more prevalent than a video on youtube.

touche’

Hey, youtube is the new high-quality advertising!!!

[ucodegen]

If there was a way to truly pay a mortgage off in 1/3 the time by revolving debt and savings it would be more prevalent than a video on youtube.

touche’

Hey, youtube is the new high-quality advertising!!!

[ucodegen]

If there was a way to truly pay a mortgage off in 1/3 the time by revolving debt and savings it would be more prevalent than a video on youtube.

touche’

Hey, youtube is the new high-quality advertising!!!

[ucodegen]

I have a mortgage on my home and choose not to pay it off early because my money is working harder in other places and for the tax deduction.

It is on my radar because it touts to help pay off your mortgage earlier WITHOUT YOU SPENDING EXTRA MONEY (i.e. no pre-payment out of your excess).
Call BS again!! You pay down the mortgage early, you loose the tax deduction on the interest. You have to use money to pay it down early. No magic is going to change that. Also important thing to note about HELOCs. Most charge interest on the peak balance during that period, not the average. If you were in the situation you could do a cash purchase, you would be more concerned with making the most return on income and you would know that you don’t pay down principle without spending the extra money to do it.

Have you produced the data yet? It would be easy to fact check the data. I presume you have a copy of the program, so it should be easy to pull the numbers out… one row per time period.

[ucodegen]

I have a mortgage on my home and choose not to pay it off early because my money is working harder in other places and for the tax deduction.

It is on my radar because it touts to help pay off your mortgage earlier WITHOUT YOU SPENDING EXTRA MONEY (i.e. no pre-payment out of your excess).
Call BS again!! You pay down the mortgage early, you loose the tax deduction on the interest. You have to use money to pay it down early. No magic is going to change that. Also important thing to note about HELOCs. Most charge interest on the peak balance during that period, not the average. If you were in the situation you could do a cash purchase, you would be more concerned with making the most return on income and you would know that you don’t pay down principle without spending the extra money to do it.

Have you produced the data yet? It would be easy to fact check the data. I presume you have a copy of the program, so it should be easy to pull the numbers out… one row per time period.

[ucodegen]

I have a mortgage on my home and choose not to pay it off early because my money is working harder in other places and for the tax deduction.

It is on my radar because it touts to help pay off your mortgage earlier WITHOUT YOU SPENDING EXTRA MONEY (i.e. no pre-payment out of your excess).
Call BS again!! You pay down the mortgage early, you loose the tax deduction on the interest. You have to use money to pay it down early. No magic is going to change that. Also important thing to note about HELOCs. Most charge interest on the peak balance during that period, not the average. If you were in the situation you could do a cash purchase, you would be more concerned with making the most return on income and you would know that you don’t pay down principle without spending the extra money to do it.

Have you produced the data yet? It would be easy to fact check the data. I presume you have a copy of the program, so it should be easy to pull the numbers out… one row per time period.

[ucodegen]

I have a mortgage on my home and choose not to pay it off early because my money is working harder in other places and for the tax deduction.

It is on my radar because it touts to help pay off your mortgage earlier WITHOUT YOU SPENDING EXTRA MONEY (i.e. no pre-payment out of your excess).
Call BS again!! You pay down the mortgage early, you loose the tax deduction on the interest. You have to use money to pay it down early. No magic is going to change that. Also important thing to note about HELOCs. Most charge interest on the peak balance during that period, not the average. If you were in the situation you could do a cash purchase, you would be more concerned with making the most return on income and you would know that you don’t pay down principle without spending the extra money to do it.

Have you produced the data yet? It would be easy to fact check the data. I presume you have a copy of the program, so it should be easy to pull the numbers out… one row per time period.

[ucodegen]

I can’t tell what the consensus is exactly, but I hear many perspectives from piggs which conclude that it is not wise to pay off a house prematurely. The reasoning being that the mortgage,including tax rebate program, is cheaper than one can capitalize money otherwise.

BINGO. It is the cheapest loan form available because the interest is deductible. Because it is secured by hard assets, it is considered low risk and therefore has a low risk premium.

The only caveat is to make sure the balance of assets are not squandered and are instead put into some investment article that yields a higher rate than the tax adjusted cost of the mortgage.

[ucodegen]

I can’t tell what the consensus is exactly, but I hear many perspectives from piggs which conclude that it is not wise to pay off a house prematurely. The reasoning being that the mortgage,including tax rebate program, is cheaper than one can capitalize money otherwise.

BINGO. It is the cheapest loan form available because the interest is deductible. Because it is secured by hard assets, it is considered low risk and therefore has a low risk premium.

The only caveat is to make sure the balance of assets are not squandered and are instead put into some investment article that yields a higher rate than the tax adjusted cost of the mortgage.

[Author]

Posts