So it sounds like my attempt at a helpful post turned into troll fodder. Sorry!
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Originally Posted by QuadSquadMom
Dave says don't pay for any of these set ups (either the one with the $3,500 SW or the bi-weekly payment plans) because as some here have stated, it costs NOTHING to simply pay additional on the principal.
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So fine... Don't pay! I bought the $149 Harj Gill program, and haven't learned any more information than I found online for free.
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Originally Posted by QuadSquadMom
You can accomplish the equivalent to the bi-weekly pay plan by simply paying 1 additional payment a year, or 1/12th extra each time you make your monthly payment with the overage ear-tagged to principal.
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Yeah, that's great! And a bi-weekly plan will keep you paying for the next 25 years instead of 30. I'm happy for you! But that's just not good enough for me... I've got to kick it up a notch!
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Originally Posted by autoxer
Sure they do shift interest, but the 'testimonials' are so exaggerated, because their clients are also putting a lot more towards principal. It is very misleading about what you can actually accomplish "with little change to their day-to-day spending habits and without increasing their monthly mortgage payments."
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That's fair... But who doesn't exaggerate comments these days? Any program that you hear of mainstream HAS to exaggerate to get any attention from the public.
Have you ever signed up for a diet that promised for you to lose 5 pounds in two months? Or a stock that MIGHT make you 2% returns? You gotta exaggerate to sell nowadays, and if you don't believe me, try it! I've done enough selling online to know the truth... You need to stretch every possibility of your product as far as it will go!
But... The truth is that this program makes perfect sense. Pay down your 1st mortgage with your HELOC, put your income into the HELOC right away, pay your bills on a credit card with a grace period... And pay significantly reduced interest.
Lots of work involved there. It's not automatic. But it's got to get the job done.
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Originally Posted by cptacek
CafeMonkey,
Please tell me the following. When you do this hand-waving math when you are trying to sell this program to someone, what interest rate are you assuming the first mortgage is at?
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First, I don't "sell this program" to someone. I like the idea of sticking it to the man, especially when the man is taking my money. And I thought that this was a
discussion forum where we could discuss things. If I was wrong, I'll be glad to stop.
And for my hand-waving math. Sorry... I'm not an Excel genius; that's why I asked for help with it. I would LOVE for someone to show me that my math is wrong so that I could move on to the next big thing. Really. It makes sense in my head, but if my head is wrong, I'd submit that I was wrong and go back to paying my normal mortgage on time.
As for what interest rate the first mortgage is at? I don't think it matters.
If you lower the balance on ANY mortgage, you will pay less interest.
And as for results... I paid down less than $1,000 in the first 2.5 years of my mortgage. In the few months since this post, I've paid down over $3,000. So, smoke and mirrors or not, I'm up 300% in 15% of the time.
Willowstudios... How are you doing with your Speed Equity?