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Mortgage Acceleration Software

bnwbaron profile photo
  • Tuesday, February 12, 2008 @ 04:24 PM EST
  • 4 Comments

Hi all,



I sat through a “go to meeting” demo of a mortgage acceleration software yesterday. I was totally skeptical, now I am totally interested. The premise is simple, all extra cash, paychecks, rental income, etc. get put in to your HELOC to bring the daily balance down. You pay for all living expenses out of your HELOC as the month goes on. Easy, right? Anyone can do that part, obviously. Here is what I want your thoughts on: The mortgage acceleration software takes your daily financial snapshot and based on that, it periodically has you transfer money from a HELOC to the first mortgage of a particular property thus driving the principle balance down. Using the monthly disposable income in conjunction with the normal payment on the primary loan results in a payoff much sooner than normal. I did the demo with a little condo I own. 72k is the mortgage. According to the demo, I can payoff in less than five years.



Now, I wasn’t born yesterday so I am looking for the angle. The cost of the software is $3500. I can do the first part (putting disposable money in the HELOC) for free,,,,but the part where you transfer a specific amount is supposedly the benefit of the software. There is anecdotal evidence of smart guys trying to do the transfer portion on their own and screwing themselves up.



Have any of you heard about this?





Thanks, Brian



[ Edited by bnwbaron on Date 02/12/2008 ]

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