Yes, I see how the system can work if a homeowner follows the program. All I'm saying is that the "system" involves no magic. It simply applies additional principle to the mortgage. That additional principle is (indirectly) whatever amount of extra income you have every month minus interest paid to the ALOC plus a one-time larger payment upfront (also borrowed from the ALOC).
I'm not slamming the system - and in fact said that if it that is what it takes to get the consumer to put that extra toward his/her mortgage, great. But realize there is nothing really new or novel about it. Additional principle paid = less interest paid over time and less time until pay off.
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Originally Posted by willowstudios
So, it's like free money for your 1st mortgage every month.
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I would point out that it is NOT free money. It is money borrowed from the line of credit. That means you must pay it back
plus interest, so that money is actually costing you.