Question: Should I buy mortgage acceleration software? I was told that I could save hundreds of thousands of dollars in interest? I was told for only $3500 I could get this software and be debt free in less then 5 years. Should I invest in it?

Answer: Save your money, what you are really buying is access to a website for $3500 which is money you could put towards your principle. The "financial" company that is selling this software is a Multi Level Marketing (MLM) company and is selling a login to a website (not really software) where you can access a spreadsheet that should be sold for no more then $200. If multiple people are getting a commission on your spreadsheet, then it needs to be overpriced. This spreadsheet is also very confusing and time consuming.

If you want to accelerate your mortgage payment, then get a specialized mortgage just for this, the two banks in the USA that offer this are CMG Bank and Macquarie. Both banks offer the true "australian model" and Macquarie is the Australian bank that invented this concept. Both banks have their strengths and weaknesses but both will get you the results that can not be achieved with an overpriced spreadsheet.

Hayden Gerson is the Branch Manager of America One Mortgage Group located in Sherman Oaks. His focus is on mortgage planning and equity management. He can be contacted via e-mail or by telephone (323) 333-5004. His website is full of wonderful information Sherman Oaks Mortgage

 

 
Posted by Hayden Gerson on 10/23/2007 01:28 AM   Comments (11)   mortgage acceleration, australian mortgage  

11 Comments on Mortgage Acceleration Software is a Waste of Money: The Truth about the "Australian Mortgage Model"

OCT
25
2007

You forgot to add in advising people about these 2 banks...the refi fees to roll your entire 1st into a HELOC will cost you so much more than $3500, that could also be applied to your mortgage. And oh yeah, then your entire mortgage (HELOC) is exposed to a variable interest rate. I pity you if the rates go up!

Are you an agent for them?
guest
2:38am • #1
Dear Guest,

The rates can be fixed as well, with indexed rates well below a comparable 30 year fixed (right now they average at around 5.5% on a jumbo mortgage) with a cap of 1% over that rate, but if rates drop, the client enjoys the drop, if they rise, they are protected. 

Your comment in regards to the fees are not actually correct, it is possible for a client to get a no cost, no point, no fee refinance, it depends on the Licensed Mortgage Professional that sells it. 

I have a feeling that you are a MLMer selling this garbage software charging the client thousands upon thousands of dollars for something they can do without the software. I am not an "agent" for these banks, agent is a term that Multi Level Marketers use, I am a Mortgage Broker who has a contract with numerous banks including the ones mentioned. I had to submit financials of my company, as well as provide references, a proven track record of clean mortgages, as well as volume minimums. Mortgage Brokers are actually qualified to make mortgage advise for their clients, compared to an UNLICENSED multi level marketer.
2:53am • #2
delete my other comment also or i'll start my own blog entitled "deceptive practices of hayden gerson"
6:03pm • #5
I do not take threads from unknown people. Your thread of libel will be kept here and will not be deleted. You cannot expect to make untrue statements as a threat, or you will be hearing from my attorney Mr. Phillips.

I am allowed to state my opinion by law and your threat will taken seriously.
8:35pm • #6
OCT
26
2007
4 Featured Posts

Wow,

Hayden,

I would report this to the AR gods.  This is not right.  I went to one of their seminars and did not agree with the costs either.  There are services and loans that can provide the service for less money.  That is competition at its best. 

1:10am • #11
Thank you Gary, I can't report it to active rain because the whiney little person who is making these big threats is hiding because he does not have an Active Rain account and is using fake e-mails. It shows how weak this slimey little "agent" is.
1:17am • #12
118,799 Points

Why can't we all just get along?

There are several mortgage acceleration products available.  Different strokes for different folks.  Although $3500 seems like a high price, in a capitalistic economy the price sets itself.  If they were charging $10,000.00 and getting it, then that's capitalism at work.  Other accelleration plans do not charge $3500.00.  I know of one that charges $5,000.00.  Some will get you on the interest rate and closing costs.

All of these products fit a different type of consumer.  To suggest fixing prices is akin to Nazism.  Let the market decide.
8:02am • #13
JAN
04
2008
 I am sick of hearing about this scam, a good originator can advise thier clients without this software
8:39pm • #14
JAN
05
2008
 I like the way you think Bill
1:08am • #15
FEB
20
2008
173,420 Points 17 Featured Posts Localism Sponsor Outside Blog

Hayden,

I am looking into refinancing, mortgage accelerator programs, etc.  I would like to think I could forgo the software that I think is mostly for people that need a coach in order to "stick to the program."  The $3500 price tag is steep in my opinion and could do a lot to reduce the prinicpal on my mortgage.  I'm very glad my husband found this post. 

I'm actually a very active member here on AR, but he found you by a google search and emailed me the link. 

2:17am • #16
JUL
13
2008
Outside Blog

I realize that this may be a little late in the context of this individual blog, but since it still comes up when searching under Australian Mortgage...

While there is some merit to these programs for a very specific, savvy investor, it is extremely rare to find that person in our business.  People come to Mortgage Bankers, Brokers, and Loan Officers because they are generally in need of our financial help, and advice.  Unless the client in question is one you have a great deal of knowledge of, and experience with, these products are most likely not for them.  I see where the statement is made above that people can be trusted to not stray from the disciplined path required to succeed in this product.  I believe statistics will show those few who have that level of discipline would be the "exceptions that prove the rule" rather than the norm. 

 

My 2 cents comes in the form of 2 questions:

 

If these products really worked as advertised, why isn't everyone offering them?  From the Banks point of view, we would rather get the money back quicker so we can "roll" it again.  After all, we made acceptable interest on it while it lasted, and we make money off of money, so the more we can compound the funds the better.

 

 Also, why is it that Macquarie Mortgage (one of the biggest "pushers" of these products) had to withdraw from the US?  I understand they have a very substantial market share overseas (over one third of the Australian Mortgage market, and around 25% in the UK), but there is a significant difference in mindset (read - likelihood to save versus spend) for most Americans.   The current US "service" economy has spawned a generation that has no predisposal towards savings,  we not only want it now, we feel we are entitled to it now!

 

If the buyer/borrower really had the necessary discipline to succeed in this product, they would probably be able to proportion enough of their savings into other investment vehicles that would provide a higher rate of return than that realized from the interest savings on their mortgage.  They would not only increase their rate of wealth accumulation, they would lower the risk involved, and be very happy to reap the tax advantages provided by the mortgage interest.

 

Ron Brown

 

First Mortgage Company of Washington
2:41pm • #17

This blog does not allow anonymous comments
 
Hm Rainmaker_large

Hayden Gerson

San Diego, CA

More about me…

HPM Financial LLC

Address: 2534 State Street, San Diego, CA, 92101

Office Phone: (800) 701-5022 x 101

Cell Phone: (619) 600-0095

Email Me

HPM Financial and Hayden Gerson disclaims liability for any damages or losses, direct or indirect that may result from use of or reliance on, information contained in the blog or for accuracy of comments or opinions of visitors to my blogs


Links

Archives

RSS 2.0 Feed for this blog

Find CA real estate agents and San Diego real estate on ActiveRain.