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ARM WRESTLE YOURSELF TO HOME PAYOFF!!!

We at the Active Rain Communtiy have decided to debate whether an Adjustable Rate Mortgage or a Fixed Mortgage is better for our borrowers. WHAT A GREAT QUESTION!

Our Parents and even our grandparents will argue until they are BLUE in the face that a FIXED RATE is a better road traveled. They love the fact that the rate and payment will not change for 30 Years and eventually after 29.5 Years their home will be paid off.

GREAT. RIGHT? ABSOLUTELY NOT!!!!!!!!

Think about all the interest they paid over those 29.5 Years. I can assure you that they paid way more than what they originally paid for their home. Now, you may be saying, Duh, Shawn! That is the financing works!" And you're right.....If and ONLY if you are sold on the idea of Mr./Mrs. Bank CEO taking your hard earned money for their FAT BONUSES!

THERE IS A NEW SHERIFF IN TOWN.....

This sheriff is named THE HOMEOWNERSHIP ACCELERATOR! This loan program happens to be in the Adjustable Rate Family. Now, obviously I am not here to blow smoke about an Option Arm or a Hybrid Option Arm, etc. I want to show all of you how to pay PRINCIPLE FIRST! This particular ARM is the only loan to have...That is if you are interested in PAYING YOUR HOME OFF, IN MOST CASES, IN HALF THE TIME! Therefore, you save hundreds of thousands of dollars in Interest. Therefore, you keep more money for yourself!

As you all know equity is a huge problem that we face at the start of any transaction nowadays. So lets do something to put those value issues to BED! There is a huge need for this loan. Here is a brief discription of how it works:

The Homeownership Accelerator Loan! The Home Ownership Accelerator product allows you to pass all your regular checking account deposits against your home loan balance until you spend it. This simple redirection of your cash flow can significantly reduce your outstanding balance, saving you interest. Plus, you still have 24/7 use of these funds when you need them; ATM, check book, on-line bill pay etc. The beauty of this marriage is cash can now work harder than ever before-with the result that you pay less in interest and build equity quicker, without having to change your spending habits! For the individuals that QUALIFY for this loan may pay their home off in HALF THE TIME!

Here it is in plain English! Would you like pay your home off or would you like to BURN MORE MONEY ON INTEREST? Or better yet...Would you like to hold up a sign saying you paid $608,291 in interest @ 6.25% and I will hold up my sign that says I paid $293,276 in interest @ 8.04%? Which sign do you think people are going to gravitate to with questions on how they can do the same thing? HOPEFULLY, NOT THE $608,291 IN INTEREST SCENARIO OR I'D DEFINITELY QUESTION THEIR THOUGHT PROCESS.

This Adjustable Rate Mortgage will destroy any FIXED RATE PRODUCT ON THE MARKET. Even if the potential client has a 30 year fixed rate @ 4.25% they are still in the WRONG LOAN! In most cases, a client would have to have a 30 year fixed rate @ 3.375% to even compete with THE HOMEOWNERSHIP ACCELERATOR! Have 30 year fixed rates ever been that low? Not from what I have heard!

In conclusion, I strongly endorse this Adjustable Rate Mortgage! I will provide proof that this ADJUSTABLE RATE MORTGAGE will out perform any LOAN PRODUCT ON THE MARKET EVEN ON ITS WORST DAY!

I encourage everyone with good equity position and a solid FICO SCORE to contact me with questions regarding this product. My objective is to revolutionize how people think about and pay for their homes.

I AM WILLING....to sit down with anyone in person or even over the phone if you live out of state to discuss this product in depth with you. Twenty minutes of your time could save you thousands of dollars in Interest and get you free of MORTGAGE DEBT twice as fast as you thought possible!

FINAL FOOD FOR THOUGHT: ARE YOU IN THE RIGHT LOAN?

Posted by Shawn French on 07/24/2007 02:33 PM

Comments (13)

Post is included in group: Carnival of Content - Loan Officers/Mortgage Lenders

13 Comments on ARM WRESTLE YOURSELF TO HOME PAYOFF!!!

JUL

2007

Interesting take Shawn, I'll try to stop back later. There is a case to be made for such a product, I'm just not sure saying either a Fixed Rate or Adjustable Rate is the right way to go....it is a case by case call. None the less, I'll stop back...nicely articulated post, though I don't agree in full.

I've checked into these mortgage accelerator programs and my concern is that they rely upon an HELOC which is a pure adjustable in the sense that it adjusts monthly. This would scare me! I could see it in small increments, but when you get to the point where you have two big a loan , he interest rate exposure would worry me.

Bob Mitchell

ValueList Real Estate Services, Inc.

JUL

2007

Shawn... I agree a little with Bob Mitchell. First off, you talked about one specific arm program and not on arms in general. The reason that I bring this up is that the type of loan that you are selling is based on my checks being deposited into this loan. And that I can draw money at any time. I have not seen one person that has talked about this program tell me the Worst case. My 14 years in lending, when it comes to any type of arm, I always give the client the worst case. Besides, if you know the economy at all, the average person can't save. Do you know that the average person in America has a balance of $1,200... a running balance. And I said, average person. In all honesty, what do you think would do to this type of loan? This is like the world savings loan that would amortize every 14 days. What you are saying is that it does this once a day.... but you need your money to stay in there. What happens if I take it all out in 1 week? I know, but does the general public?

Sorry if I am sound negative here.... but you never tell us the rate and how this adjusts. You give us very little details, just an outline of the positives. As I have stated, I am a firm believer in giving details and not just what sounds good. Lastly, you didn't share on the fact that you would help someone with a fixed and how you could save them money here. Did you know that you don't need to pay off your house over night.... that you could take that extra money and make more on it in regards to the market.?? Just curious.... I think this arm is just like the pay option arm.. it's for the savvy client, the 1% out there... not the 10% or more... just my opinion. And don't forget, you can write interest off. Thanks for sharing this.

jeff belonger

Jeff, you are a funny individual. Did I kick your dog in our past life? LOL. Also, I find it very difficult to blog every little detail about the loan. After all, my job is to close loans. I do not get paid to blog product guidelines. Also, do I really need to descibe my conversations with my clients in regards to the pitfalls of an ARM on Active Rain? I think it is self-explanitory sir. Thanks for your thoughts...

Shawn...you hit the nail on the head. After all, my job is to close loans. I do not get paid to blog product guidelines. To me, that sounds like true sales. Look, you might think I am being totally negative. But I am trying to make a few points. But you don't want to answer them, which can only tell me one thing then. Disprove me.???

2nd... you wrote this.... Also, do I really need to descibe my conversations with my clients in regards to the pitfalls of an ARM on Active Rain? Why not? When I sold a pay option arm, I gave the worst case scenarios and pointed this out....as I do on all loans.

Lastly, you say.... I think it is self-explanitory sir. Self-explanatory for whom? the loan officer or the consumer? And what is? I am in the business and I had questions which you didn't answer. And if you are in the lending business, you know that many clients still have no clue when they get a loan as an arm, that comes with more explanation than a fixed rate.

Overall... you can take my tone any way that you would like. But I look at these blogs, these types of loan, as if I was a consumer. You aren't giving me any reason to buy one of these except that you can "guarantee" this product. What does that sound like? I think that is self-explanatory.

jeff belonger

Jeff, please...I don't have enough time in my day to explain this program on a Blog board. That is all I am trying to say. When I meet with clients I provide numerous scenarios for them. Of course, I give my opinion on which program I feel fits them best (as far as numbers are concerned). BUT when it comes down to choosing a loan MY CLIENTS pick it. I never pigeon hole my client to one option. Lastly, I would love to answer your questions but not over a blog board. I am sure this exchange has taken too much time out of both of our days. Got to get ready for a 5:30 meeting Jeff. Hope all is well out there.

JUL

2007

I have sone a little research on Accelerator programs and so far, I am not a fan. I am by no means saying that it won't work, because I do believe it can. I just think that it's a program that can get some people in trouble if they are not careful .

Shucks. I was looking for answers, not questions.

Shawn- Thanks for your post. I would like to hear more information about this program. If it works like an option/Arm,I would be very concerned about the risk involved in this program.especially since rates are rising.

JUL

2007

Shawn...Interesting post and how you tought thatthis is the best solution. First, let me say that I am certified on the CMG HOA, so I can say that to say these are the best solutions is not entirely true. They are OK for some, but I am not a big fan of these in the sense that you intend. Simply put, other strategies may be better. I do like these programs but mostly for using in cooperation with other strategies, although a small percentage of people really need these types of programs.

For those of you looking for more information on this program, visit www.cmgfs.com/partner/

JUL

2007

Shawn, I like a little fire in a post. You gave your opinion and you did it very well. Extremely nice job.

DEC

2007

I've found these mortgage product to be very difficult to get the consumer to understand. Most are not disciplined enough to pay down the principal. Everyone wants to live on credit. Have you had a lot of success teaching people about this? If so I would like to pick your brain sometime.

JAN

2008

Man this world of mortgage acceleration gets crazier all the time. Is this the CMG product or something different?

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