I recently responded to a comment in Margaret Woda, a Realtor out of Maryland (http://activerain.com/blogsview/161295/What-s-the-future) where another real estate agent implied that paying a little extra per month and one additional payment at the end of the year was the same as Mortgage Acceleration or Mortgage Elimination.
The key here is that in a Mortgage Elimination program (in most cases) you do not have to pay extra per month. That would defeat the purpose of the program.
Here is my response to the comment.
Hi Margaret. Great post.
I am responding to Nestor and Katerina's comment regarding being able to do the same thing as the CMG loan by paying additional money towards equity each month and applying one payment per year extra.
I have put clients into the system (PayAccel HELOC Program) that reduced there monthly expeditors by $250.00 per month and reduced there pay off from 27 years to 11.3 years saving over $100,000.00 in interest. So paying extra money per month is not a wise choice.
With out sounding as a proponent of the CMG loan (which I can be if it meets the client's best interest) one of key components of this loan is the automation of the process by utilizing the HELOC as a checking account. One of the problems with this loan is it does not teach the HELOC strategy.
One better is the HELCO system that does not require the refinance of the existing loan and instead teaches the consumer how to use a HELOC as a tool to eliminate personal debt and Mortgage i.e. PayAccel HELOC System. My company Tri-Star Consulting Group, LLC is a licensee that markets the product for Financial Freedom International, Inc.
Our system unlike some of the other system provides financial coaching to the client to help them learn the strategy so that once they do learn how it works they can apply the same strategy to there other investment properties or any short term investments they may have. It is not a software program but actual coaching and teaching of the strategy that is provided.
It is the same concept that is used in Australia, New Zealand and the UK. Financial Freedom International, Inc has taken it a step further and offers programs for people that don't qualify for the PayAccel HELOC. Our PayAccel Plus program is designed to get the client into position within a few years to be able to utilize the PayAccel HELOC strategy so they can either eliminate there mortgage or build there equity position 3x times as fast WITH OUT paying additional money per month or per year.