New mortgage acceleration products now offer flexibility
August 21, 2007 | Mortgage | 
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Refinancing can be an expensive and time consuming process. The ability to manage our personal financial situation without refinancing every 5 years is extremely valuable.
In our standard mortgage we have no flexibility at all. Anything we pay into it is permanent. This makes most homeowners reluctant to put extra cash into their homes. It can’t be pulled out on a rainy day unless you take out an equity line or refinance.
Now that has all changed with the introduction of the ”Home Ownership Accelerator”. This loan is setup as a first position equity line. As such it provides instant liquidity for up to 80% of the value of your home without having to fill out new paperwork of any kind. Once you have this loan you have a long term flexible solution that will naturally accelerate your principle reduction. This is possible because the account combines your mortgage, savings, and checking accounts into 1 account. As a result, any deposits you make into the equity line reduces the principle balance. You are now paying less interest for each day that any of this monthly cash flow sits in the account. Again, the major advantage of this whole plan is the flexibility. Anything you put in can be pulled out at any time.
The idea is to leave any liquid funds in the account that are not earning as much as your equity line interest rate (apx 6.07%). This would certainly benefit any checking accounts or savings account balances you have now. Most of us have our taxes and insurance impounded. That is a hefty monthly payment that is held by escrow and earns us nothing. It sits in the escrow account for up to 6 months at a time. Funds like these are very effective in driving down your principal balance and therefore saving you money in interest.
This type of flexibility is unheard of in the mortgage community and this GMAC backed product will certainly make head way.
I have been fully trained and certified for this new program and can answer any questions you may have. Call me at (949) 766 5054 for a free amortization analysis. Lets compare this to your loan…side by side.
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