does anyone currently use home ownership accelerator.

Samantha · Posted: Sat Mar 01, 2008 12:02 am Post subject:

Yes Charles, reviewing new products as to who much it can be of help to borrowers is good. At least people will come to know whether it's worth going for such products as Homeownership Accelerator Program.

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Why are you guys so against this product. The home ownership accelerator loan is not the same thing as UFF. The key benefit is that the loan is flexible. Your money remains relatively liquid and should you lose income, you will not default with enough equity in the house. I think CMG should not highlight the quick payoff as much as they are and needs to focus on showing people the features this product has.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Victor,

These are just the personal point of views of the above posters. BTW why do you think it is helpful. Can you show me any points?

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No payments. Just use as bank account. Keep interest low with lower principal balance but full access to the money up to line of credit amount
(which is 90% of home value at the time of financing). Those with great credit but irregular or inconsistant incomes such as builders, small business owners, investors, agents, and commisioned sales persons can greatly benefit from this product. And i would definately buy down the rate to as low of a margin as possible.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Thank you Victor for sharing the information with us Smile

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My only concern is how much the closing costs are. I have looked up the rates and the Libor is currently 2.709.
You pay points for buying down the margin. Starts at .375 points for a margin of 3.25 and can be as high as 5.5 points for a margin of .75.
The one month Libor obviously can change monthly so you can also pay a little higher points to cap the first 3 or 5 years to a maximum increase of 1% over your original rate. The life time cap is 5% over start rate.
There is also points charged for LTV (I guess the line of credit divided by the appraised value). You pay no points on up to 75% and most points on up to 90%.
This is all figured on Primary residence, as i am sure it's probably higher for second homes. FICO scores must be min 680 and i think points are higher if not at least 700. This is obviously targeting the most credit worthy borrowers.
Points can range from .375 all the way to 9. Seems very high to pay 9 points, but i wonder if its worth it to have a LOC up to 90% of value (at time of closing) start rate of 3.459 with a cap in the 1st 5 years not allowing rate to exceed 4.459 and a lifetime (30 yr) cap of 8.459.
Despite the closing costs, i still think this could be a great tool for building wealth and a portfolio of investment properties.
Any thoughts? Am I a #s nerd?

Samantha · Posted: Fri Apr 18, 2008 5:01 am Post subject: RE:

Hi Victor,

Have you used this product? seems like you're well aware of it. The closing costs will vary from state to state, also from lender to lender.

Guest 0.10 Dollars($)

Hi Samantha,

I have not used this product. I just do a lot of research before i proceed. I think it might be compulsive behaviour.
Either way, my internet searches tell me a lot about the product, even the sales techniques that brokers should use for this product.
What i would really like, but have a hard time locating, is feedback from current and former HOA customers (besides what the CMG websites have).
Do you know of any sites, forums or blogs which may include customers of the Home Ownership Accelerator?

Guest 0.10 Dollars($)

Hi Victor, did you check out all the feedback given by community member regarding the HOA. I hope it will give you some idea about this product - the good or the bad aspects.

Guest 0.10 Dollars($)

Hi Ryan,

I have looked at the feedback in the various forums. I have learned a great deal about this product and still like the concept. I was hoping to hear from customers who use this and see their experiences with it.
Hopefully i can find some independent commentary outside of their website from HOA customers.

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Hey Victor,

I personally feel that it not very helpful for the home owners. It seems that you are paying off the debt early but at the end you are paying nothing less than what you actually would pay to the lender.

Guest 0.10 Dollars($)

Hi Niicss,

I'm not sure i follow. If the mortgage is paid off early, then there is no more interest to pay, until you borrow from the line of credit again.

Duplicate content deleted as per the forum rules.

Guest 0.10 Dollars($)

Hi Everyone:

The amount of mis-information in this thread is discouraging. It is particularly sad that so-called "professionals" in the industry are bashing a product they clearly do not understand (Eric and Eugene, among others, I'm talking to you).

I closed a CMG Home Ownership Accelerator earlier this year, and I absolutely love it. We have already recouped the up-front costs of the loan, and our mortgage principal balance is now lower that it's ever been. If you have good credit are are financially disciplined, it is a product that you really should consider. LIBOR is ridiculously low right now, and by the time it goes up (if it does go up) our principal balance will have reduced so much it won't even matter. I would recommend that anyone interested in paying their house off quckly give it a look...just Google "CMG Home Ownership Accelerator."

If you'd rather keep your head in the sand along with the mortgage "professionals" who posted earlier on this thread, you can do that too...

Dave

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.15 Dollars($)

Welcome Dave.

Nice to see you have share your view point with the community. But I would like to ask you if this program can help the borrowers to pay off the mortgage soon then why so many people now suffering and facing foreclosure?

You have said that

Guest 0.10 Dollars($)

Hi Niicss:

People lose their homes to foreclosure because they can't make their house payments, because they either 1) lost their source of income or 2) chose a bad loan. That is a completely different subject.

The CMG Home Ownership Accelerator will only work for people who live within their means, so potential clients are carefully screened and must have a good credit score. You would have to contact CMG to find out what the minimum score is.

Dave

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