Mortgage Programs

Join Date: May 2025 · 08-28-2007, 07:18 AM

That site looks like spam/scam to me.

If you want to pay your mortgage off sooner, simply pay extra principal. No need to pay extra fees or set up a formal program (unless your mortgage has a prepay penalty, then you have to decide whether it's worth it to prepay or not).

**cptacek** · 08-28-2007, 03:30 PM

I agree. There is nothing magic to paying off your mortgate early. You owe so much to the bank, (the principal). Because they lent you that money, you pay them interest. The monthly payments you have were figured out by your lending institution to pay off the loan in so many months. If you have a 30 year term, they figured out how much you have to pay every month to get the principal and interest payed off in 30 years.

If you want to pay off the mortgage early, you have to pay the principal off faster than they figured. There are lots of "systems" to do it, bi-weekly; send in an extra payment every year; with every payment, send in an amount equal to the interest accrued that month, etc., but these are just games people play to get themselves to send in extra money to the principal.

It might take an extra envelope every month and another piece of paper telling the lending institution to apply the extra money to the principal, but that is all you have to do to send it in yourself. You don't need to pay anyone else to handle it for you.

**willowstudios** · 08-28-2007, 05:29 PM

I've also been looking into these "Money Merge Account" things.

What I've learned is that they might actually work - but, it's hard to know without actually trying it out.

The main thing that people are worried about seems to be:

#1) The cost of software and #2) The HELOC #3) Can you opt out #4) Why can't I do it on my own?

The cost seems to be relative to what they say you'll save. So, the high cost is because you'll save a ton more than what they charge (I'm not crazy about that idea). The HELOC seems to be needed because of complex calculations that the software does that connects the dots between your paycheck, HELOC and 1st mortgage. Apparently, you can opt out anytime. As far as doing it on your own...the word on the street is that doing it on your own is possible to an extent, but ultimately (apparently) the software method is superior because it does things you can't do on your own. (I'm not sure if that is true, but instead of arguing that point I've decided to let it go. If the software is a glorified calculator then so be it)

Because I don't like to jump into anything without learning all aspects of it I'm taking my time learning more about it. But, I must say...from everything I've been reading and seeing it does seem to work. It's not really the "system", but more the person using it. If you don't follow a budget you'll end up getting off track and into debt with the HELOC. If you are able to follow the program exactly then it seems the ultimate goal of paying your mortgage off early (earlier than by yourself without the system they have with software) is possible.

Also, in all my research I've found what seems to be the founder (or that's what he says) of the whole concept. I took a "webinar" with him and I must say that it did make sense to me. I understood everything clearly and do see how the software works by doing calculations. His system is much cheaper and it's called, "Speed Equity". (you can Google it) His name is Harj Gill. It's strange because apparently he invented this whole thing in Australia and has a big following there, but I can't really find anything about him. He does have a book about the concept which I've ordered from Amazon and it should arrive any day now. "Own your home years sooner"

I haven't made the leap to buying into concept just yet, but I might in the near future depending on what else I learn about "Money Merge Accounts". I'm fairly close to paying the fee for the online software at the Speed Equity site ($149 - the software does the exact same thing as far as I can tell)...it's a lot cheaper than the $3500.. I'd NEVER spend that on software!!!

Another thing that I found is something called, "Precise Principle Pre-Payments". This looks interesting...this guy discusses it on his blog:

Combine “Speed Equity” with Precise Principle Pre-Payments and Turbo Charge Your Way to Being Mortgage Free! � Ron Borg ’s Mortgage Advice

So, with that....I'm curious to know what others think??

**rooskers** · 08-28-2007, 11:31 PM

I hate to say it but there is no magic plan that lets you pay off your mortgage that involves some super genious mathematical computations or some sophisticated software. Basically the money merge account program can be simplified as you paying more each month to prinicipal. Now how you go about paying more to your principal can be done in a variety of ways but that is the only way you will pay off your mortgage quicker. Some might call me a disbeliever or basher for those that do I have a Bachelors of Science in Mathematics and and Minor in Computer Science. If you would like I can make you a program just like theirs giving you an amortization table and all sorts of features like if you make this additional payment to principal you will pay it off in X years and save X amount in interest. Don't worry I will only charge you 49.99 but if you act now I will charge you 29.99 and as a bonus I will send you a free sucker

(Or you can go to Bankrate.com and use their calculators for free. Here is a good article that explains in detail what a merge account program is and how you can do one on your own.

The Simple Dollar � Money Merge Accounts: Are They A Good Deal For Home Borrowers?

**AmyKay** · 08-30-2007, 08:14 AM

I was just coming to this board to ask questions about this! My "guy" at KAP financial is trying to sell it to us. They have a nice presentation at:

KapFinancial dot com. click on the green "home accelerator" button.

It seems like a great idea, just SO different. It's a "line of credit?"

**Ima saver** · 08-30-2007, 01:57 PM

Well, let me tell you how i paid my mortgage off early and I did not have to pay a dime. I took my regular payment to the bank and i always had a separate check that said "principal only" They applied both checks and I made sure I got a receipt for two separate payments. I kept track of it on a piece of paper to make sure our records agreed. I got my first house paid off in about 10 years and I have not had a big mortgage since.
Occasionaly, we borrow to buy land and I take a mortgage. I do the same thing every month, with two checks (everything I can save up for that month) and I got my land paid off in 2 years.
Don't waste your money on anything like this.

**Ima saver** · 08-30-2007, 02:00 PM

I just went to the site. It looks like a rip off to me. You don't need to pay anybody to pay your mortgage off early.

**willowstudios** · 08-30-2007, 04:01 PM

Hey guys, I went and actually bought the "Own Your Own Home Years Sooner" book on Amazon.com. It's written by the guy who "invented" this whole concept. I'm starting to read it...and I must say that so far there's information that isn't really being discussed on all these forums. It's really hard to explain, but it's a lot of facts and figures.

I consider myself intelligent and very curious. My initial reaction to the book is very positive...everything that I'm learning points to this actually working. I'll know more after I finish the book.

Also, I found a bunch of Podcasts that I'm listening to about "Money Merge Accounts". They seem to be very helpful, but I have to warn you that they talk about the United Financial software ($3500) which I DO NOT plan on buying regardless. The book I got has a free code to the online "Speed Equity" software and it seems perfectly fine.

The podcasts are here, but start with the Mac Saunders guy. The other guy has an annoying voice. Jubilee Project Podcasts � Podcasts

I'm hoping to finish the book within the next 1-2 days..

**loanstar** · 08-30-2007, 07:02 PM

Originally posted by devils_advocate View Post

That site looks like spam/scam to me.

If you want to pay your mortgage off sooner, simply pay extra principal. No need to pay extra fees or set up a formal program (unless your mortgage has a prepay penalty, then you have to decide whether it's worth it to prepay or not).

i second that, if it does have a prepay penalty, you can change your mortgage plan in due course..

**AmyKay** · 08-30-2007, 07:23 PM

My husband and I met with my rep at KAP Financial tonight. I do think there's more to it than just paying extra toward the principal. The key point is that all your money sits in the account, which lowers your interest rate. Our paychecks will get deposited directly into the account. We'll pay all our monthly bills on an American Express, and pay it off at the end of each month from that same big account. That way, the money sits there all month, lowering our interest rate. The less we spend each month, the more we save, the more stays in that account which lowers our interest.

It is complicated. But it made a lot of sense to my husband. I think we're going to do it. If it's a disaster, we can refinance back to a traditional loan anytime we want. I think the video presentation on KapFinancial dot com's website explains it well.

**rooskers** · 08-30-2007, 08:42 PM

AmyKay what is the interest rate KAP Financial will be charging you for this new loan and will they charge anything to have your existing mortgage refinanced? If this doesn't pan out like you think it will how much are they going to charge to have it refinanced back to a traditional mortgage?

**AmyKay** · 08-31-2007, 07:34 AM

The guy is going to give us a good faith estimate next week. I hope it's reasonable. I'll let you all know.

**autoxer** · 08-31-2007, 08:43 AM

Originally posted by AmyKay View Post

My husband and I met with my rep at KAP Financial tonight. I do think there's more to it than just paying extra toward the principal. The key point is that all your money sits in the account, which lowers your interest rate. Our paychecks will get deposited directly into the account. We'll pay all our monthly bills on an American Express, and pay it off at the end of each month from that same big account. That way, the money sits there all month, lowering our interest rate. The less we spend each month, the more we save, the more stays in that account which lowers our interest.

It doesn't lower your interest rate. It lowers the balance on which interest accrues. Until you write a check to pay your bills, then the balance goes back up. I would only recommend this type of loan to someone that is extremely disciplined about their spending.

Originally posted by AmyKay View Post

It is complicated. But it made a lot of sense to my husband. I think we're going to do it. If it's a disaster, we can refinance back to a traditional loan anytime we want. I think the video presentation on KapFinancial dot com's website explains it well.

Keep in mind that refinancing is expensive. You don't want to do it too often.

**AmyKay** · 08-31-2007, 11:39 AM

You're right, it doesn't lower my interest rate. In fact, the interest rate will vary, but with a cap of like 8.5%. Even at that rate, we'll pay off the house much sooner.

I'm gone for the weekend, will report back when I have the good faith estimate.

Mortgage Programs