From: "Jeff Strickland" 
Newsgroups: alt.org.natl-assn-mortgage-brokers
Subject: Re: Equity Acceleration
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Date: Sun, 15 Apr 2007 18:22:24 GMT


"Ashley"  wrote in message news:vDsUh.910$Qp.207@trnddc07...
> We do not originate mortgages. We show the property owner how to satisfy 
> them - sooner.
>
> Our web based system enables people to accelerate the rate at which they 
> accumulate equity in their properties. We show them how to force changes 
> to the amortization schedule and cancel future interest by aggressively 
> paying down the principal while using the bank's money and not their own. 
> We have customers who are on schedule to pay off 30 year notes in as 
> little as 8 years or less. They do it on current income, without making 
> additional out of pocket principal payments, without refinancing, and 
> without making changes to lifestyle or cash flow.
>
> If you would like to learn more about this smart system, please respond 
> and I will show you how it works.
>
>

Well, you are lying. One can not pay off a loan early without either 
refinancing to a different loan program -- hence you must originate loans --  
or the existing loan must have greater amounts sent in as extra principle 
payments.

My question to you is, IF mortgage interest is a deductable expense on 
income taxes AND one has the income with which to pay a mortgage off early, 
then wouldn't that sort of person need as many deductions as they could 
find?

The high dollar people that I know of obtain Interest Only Mortgages that 
let them pay mortgage interest for years, and write off 100% of the payments 
they make.



PS
To those that are interested, the program being offered here is a 1st Trust 
Deed that is a HELOC, and requires your paycheck to be deposited through 
automatic deposits. The FICO score that is required is either a 720 or 
740 -- I forget which. What happens is that your pay is deposited and this 
pulls down the average daily balance from the date of deposit. You pay your 
bills with HELOC checks, that slowly drive the principle balance up again, 
but your next payroll check pulls the balance down again and the process 
starts again. The idea is that if you are a paycheck person and have a high 
FICO, then you can use the power of your deposits that exceed expenses to 
reduce mortgage principle much faster. The affect is that your residual 
income -- income after expenses -- earns interest at the effectivej interest 
rate of your home mortgage.

It is a very good product for the right borrower. Very good. Over time you 
will have much greater equity in your property than you would otherwise 
have. Since your mortgage is essentially a home equity line of credit 
(HELOC), then you have immediate access to upwards of 90% of any equity you 
might have, and no new qualifying to pull out the cash you want. Let's say 
you collect cars, and are driving through the wine country one afternoon and 
see a fabulous '67 Mustang for sale. You can pull to the side of the road 
and simply write the check and take the car home. Cool, huh? Another thing 
that happens under the program is that your daily living expenses -- stuff 
you pay for with the HELOC checks, like grocweries and utility bills -- get 
transferred to mortgage interest, and they become a tax deduction. Any thing 
you buy with a HELOC check is repaid through the mortgage, and any interest 
paid that way is a deduction.

There is a a downside to the product, but since it requires a high FICO and 
good income, the people that would be affected by the downside are 
disqualified from the program.

It's a good program, and you should contact the OP for details. But do not 
be fooled by her promises to not write a new loan, or pay stuff off without 
spending a dime.