Mortgage Accelerator Programs - Please, be reasonable....

I love the so called experts who have no license and no experience.  If it sounds too good it almost guaranteed that it is.

Jeff, You know my feelings on this subject. The majority of these people are not licensed but all took the 1 hour brain washing course and now became experts in tax law, investments, mortgages, etc.. Geez I went to college for 4 years..  and still never went on to get post work done.  I guess we all should of saved our money and just gone to those 1 hour seminars...lol

Jeff, I ran the numbers myself after being contacted by a member of Active Rain. This guy called me and asked me if I wanted to make a lot of money. He said he was already doing it. I started thinking MLM. I ran the numbers and was not impressed. My suggestion is IF you have extra money, pay extra and pay it off faster. 

Licensed for a reason. Accountability.

LOL at Matt

1hr brainwashing.... bwahahahaah!!

I had one spam my email box and then tell me he didn't spam me because he didn't mass email the message. <= then argued with me about it.

Jeff, a pastor called me the other week asking if I could explain the UFF software program and what I thought about it...halfway through the conversation he confesses that he has been selling it to members of his congregation...beautiful!  Case and point.

Words of wisdom for sure. I was a featured speaker a while back at a real estate investors club. The speaker after me was selling this product. I was in the back of the room laughing my head off (quietly) with an accountant friend of mine.

Jeff,

I did a post on my personal blog a while back about there "disclaimers".  Below is the link to that post.  You just have to ask yourself the following question:

If you wouldn't go to a financial planner who has a disclaimer stating he does not provide financial or investment advice, why are you using these guys?

Ever Read the "Fine Print" on Those Money Merge Account^TM Programs?

In the end no matter what mortgage plan and choice you make in life to obtain your financial goals they all require discipline. This is where the average person struggles. The software reminds people what to do and when to do it kind of like an accountability partner. Gym Memberships do fall off but those who have a personal trainer stay much longer and yes at a premium. When you see the result of the instant gratifcation purchase on the time to pay down your mortgage it makes you stop and think. You could do it on your own but go back to the gym example and tell me how many people actually do. Yes. just because you have a software program does not guarantee that you will do it either I agree. The concept of CMG and MMA that has proven to work outside of the USA is to leverage your money and to use the laws of banking against them. Traditional checking and savings pay nothing. Our money earns 1-4% while the bank lends it at 6-8%. The spread is nice. MMA and CMG HOA are trying to flip this in our favor. Although with MMA this is mostly in the back end it is still savings overall and one cannot argue savings. If you paln to mave every two years this may not be for you. You have to want to stay put at some point. CMG HOA immediately saves you interest by truncating the balance and the interest you pay on that balance. An effective use of interest cancellation. Both products are good for the right consumer. The consumer that wants to have a personal trainer and wants to truly achieve a result not check off a box on something they are supposed to do. It is a tool that we as mortgage professionals can use to strengthen our foothold as knowledgable professionals. You don't pull out a hammer to screw in a screw. Use it as necessary. You may never need it in your business. And as always there are those out there that do not do any homework and fail to truly understand what they are selling. It gives those of us who care a bad name.   Another good thought provoking post Jeff.

Ok guys - here is the real question that Jeff somewhat touched on in his post.

This is 2008 people.... who has an extra $1000 per month to pay towards their mortgage????

The program has flaws. It makes assumptions which can't always be maintained. Sh..t happens.......

And who has $3500 laying around to buy a program that tells you to spend an extra $1000 that you also don't have? 

Jeff, although I do agree with you in some areas I do not agree in all.  I was a rep for U1st for a while, and The concept acctually works very well. HOWEVER! and I use a BIG HOWEVER.  U1st would like the clients and the reps to beleive that the software is the almighty powerful key in this program.  However the software is actually the fly in the ointment.  I left U1st and have found another program that does alot more for the money. I also found a place I can purchase the exact same software U1st uses for about $ 199.00.  I have been a financial planner as well as mortgage broker for years.  Mortgage Acceleration programs do work, if you work them.  For example the most common mortgage acceleration program out there is the Bi-weekly mortgage.  If done properly just doing a bi-weekly mortgage can take 8-9 years off of a 30 year mortgage.  Only problem is that the banks use it as a cash cow, instead of a client service.  They charge $ 299.00 and up plus so much a month to implement.  You can get the exact same effect and more by simply making 1 extra payment per year, and doing it at the beginning of the year instead of the end.   The reason there are not as many online post from U1st selling the MMA is that production is WAY down, due to market and underwriting changes.  Only about 2 of 10 clients can acctually qualify for the program.  You are right in that Most Mortgage acceleration programs are only ways to seperate the client from thier pocketbook, but there are some very good methods of paying of a 30 year mortgage in 10 years or less.   It is simple mathmatics and little known banking secrets the banks hope the average person never learns.  Such as the 20:1 Amortization rule.  There are ways to turn that around in favor of the borrower, if you know how..   Good Blog..  I just hope you are not saying ALL Mortgage acceleration techniques are bad, because there a few that really do help the client REV UP their Equity building.

                                                                                          Tom

Jeff, I was going to stay out of this discussion but I have to jump in.  I have stayed on periphery of this product for nine months now, watching, learning and questioning, afraid to fully commit.  The venom being spewed at UFirst (and MMA's in general) from the Active Rain Community never sat well with me.  Every time I read something venomous on Active Rain I'd do more research and peel back the layers.  Every layer that I peeled back exposed that the person spewing the venom against UFirst didn't get the vision, didn't understand the product or the company.  In contrast,  I've done my best to write balanced reviews of this product and others like them.

The power of UFirst's MMA product is not that it accelerates mortgages, that's just the marketing message, the piece that the consumer can understand.  The power of this product and the vision of UFirst is so much bigger than that. The product has evolved into the most powerful financial management tool available to consumers today.  A new version of the software is being released that goes far beyond simple mortgage acceleration.   After seeing these changes, I believe that any financial professional who does not make the UFirst product available to their clients is doing them a disservice.

UFirst Financial has recently been awarded the prestigious Ernst & Young Entrepreneur of the Year Regional Award and is in the running for the National Award.  In addition, Douglas Andrews of Missed Fortune fame is now behind the product. 

For the first time I am jumping into marketing the UFirst MMA software with both feet.  There is nothing like it on the market, this product is about to create a financial revolution that will positively change the financial lives of millions of Americans.    My only regret is that I let the naysayers on Active Rain create doubt and keep me from taking action for nearly 10 months. 

Jeff, you can find my answer to your first question by reading my blog post "The Single Most Important Ingredient To Getting Out of Debt"   Please don't insult me and tell me that I don't understand how this product and others like them work.  I've spent ten months researching, and understanding them and I don't recommend UFirst based on a whim or having gotten sucked into it. 

Answer me this question, are your blogs and opinions based on actually having purchased the software product or are your comments simply based on the "analysis" software? 

As for your question regarding Lending Tree - I have no opinion as I am not educated on the "lending tree platform".  I never give opinions on things that I'm not fully educated on.  In addition I've learned the hard way to never answer one of your baited questions.  You have an unbelievable way of taking peoples written words and twisting them to say and mean something different.  Go ahead and enlighten us on your Lending Tree opinion.

Finally, I blame no-one but myself for my choices - my comment was simply that I regretted letting you and others put doubt in my mind and keeping me from taking action.  In hind site it's probably good that I did simply because I can now guarantee that I know way more about the benefits and negatives of this product than you do. 

I am more than happy to be the Harriet Tubman of Active Rain - helping run people through the underground railroad and freeing them from the financial slavery of debt.

HERE IS AN OPINION IN SIMPLE TERMS.  I would be interested in any and all answers to the questions below.

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