Is this legitimate?

charlesarmbruster · Posted: Mon Feb 25, 2008 12:17 pm Post subject:

It is exciting to see such emotional debate! I'll stop discussing this subject, since the purpose of this forum is to address visitors' questions.

My original purpose for jumping into the MMA discussion amongst mortgage professionals was strictly educational. In my years, I have always found that ideas that make sense are often right and legal, just as with guidelines. If a proven market product has customers who like the benefit their financing provides, then I am interested in learning all I can about it. While I may not buy it myself, certain circumstances will love the advantage this 'forced' additional-payment-to-principal provides.

Anyways, thanks for all the back-and-forth! Now, go close some loans!

livinginnky · Posted: Mon Feb 25, 2008 3:20 pm Post subject:

Ahhh, I said a PM not a quick message. I always delete those. Either way I have seen that simulator before. It doesn't really tell you anything. Like what is the balance of the heloc at the end? Is it zero? And are all the savings used towards repayment.

I agree that it is good to have an open honest and educated discussion. I want to be sure to educate this sites visitors especially when it comes to products like these.

What I have been asking for and have asked several times (to other people) is to see a real scenario based on the software itself not the free simulator. I want to see a real life scenario that worked. And then compare that to just paying the same money to extra principle payments. I don't believe the interest cancellation and effective rates mumbo jumbo... and the only way to be sure one way or another would be to compare the 2 scenarios side by side... day by day... month by month... year by year. Not only would this be possible it would be easy... should someone come forward with their program and numbers.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

I agree with livinginnky,

This type of loan is usually sold to the wrong people and the wrong way. If I hear one more time that you can pay off your mortgage in 14 years, etc. I am going to scream! It's funny how the calculator doesnt tell you that ALL of your disposable income is going to pay down this 8% mortgage. Well, for those of you that dont know this, you can pay extra on your 5% mortgage and have it paid in 10 years. It's amazing what they will come up with to sell these garbage loans.

gmakerley · Posted: Tue Feb 26, 2008 8:58 am Post subject:

thanks, lisa, for that last comment. i hope you don't hear any more of this, as i don't wish to have you scream, particularly in this forum!
i agree with you - any literate, concerned buyer can do this for him or herself by simply prepaying.

this gimmicky stuff usually ends up costing homeowners far more than they originally bargained (contracted) for.

livinginnky · Posted: Tue Feb 26, 2008 10:47 am Post subject:

Exactly Lisa and George,

That is why I simply won't let these posts die. I get so many mailings and phone calls from these trolls that I won't rest until I know I have prevented someone from being misled by them. What is funny is they made the mistake of calling and making me mad 1 day. After that I swore that any chance I got to prove them wrong I would take it. I do not like being lied to ... and I feel I have an obligation to this sites visitors to help them understand that there is a better way.

Just like Lisa stated, you can make this plan affordable by doing it on your own. There is NO reason, I repeat NO reason, to use this system. There is no upside to it, besides the increased costs of an already costly mortgage.

See you guys in a couple weeks for the next discussion when the next salesperson comes by and starts out a bogus salespitch disguised as a post. It will happen and the conversation will start and end the same way... as they have many times before. Hey Eugene, come on, you know you like the drama, it is fun to mix it up a little every now and again.

gmakerley · Posted: Tue Feb 26, 2008 12:09 pm Post subject:

man oh man, eric; you are on a roll today...i just penned a response to your "lecture" on the poor credit post, and here i am again responding to you.

i am thoroughly in agreement with you - there are so many "trolls" (nice usage!) out there and so many lies being spread to the uneducated that it arouses my ire too.

this forum is so very necessary, and i am glad to be able to say i have the same attitude as you and many others, in that we are attempting to educate folk so they wont make the mistake of listening to all the snake oil salesmen out there.

i purposely answer the phone these days when all these "helpful" loan officers call so i can specifically tell them never to bother me again.

Guest 0.10 Dollars($)

Eric,
It seems that you are just going to argue this thing no matter what is proven to you. How can using disposable money to save on interst costs be a bad thing. Either you are spiteful and determined to defer business from CMG or you are just really ignorant and should not be allowed to give financial advice to the public.
Another point; the product on that news video was referring to U1st and there seems to be confusion between their software offerring and a legitimate financial product that CMG offers.
I agree the software is a waste of money, but the concept is a good idea. CMG's HOA is a enhanced version of what they have in Australia and UK. This could quite possibly the most ingenious lending product out there by a mortgage company. They focus on top notch credit borrowers and deliver what borrowers really want.
Try to be open minded and stop dismissing something before you've had a chance to learn about it.

0.10 Dollars($)

Dang - it took two months (!) for someone to come along and start all this nonsense over again.

rather than taking your good money and giving it to someone else to distribute for you (i'm talking to consumers now)...do this on your own! instead of making your regular monthly mortgage payment, check and see what the standard principal portion of your payment is and double it. then wait and see how quickly the balance comes down.

and, of course, if doubling the principal is not a possibility in your budget, make any extra principal payment you are able. it is beneficial in both the short- and long-term.

a post by eric (?) a while back noted that you might think this proposal would be highlighted on other than youtube, etc.

i agree, but it seems our society is much more driven by infomercials than anything else - look how they thrive.

gmakerley · Posted: Sun Apr 20, 2008 11:05 am Post subject:

i did it again! forgot to login first!

Dang - it took two months (!) for someone to come along and start all this nonsense over again.

rather than taking your good money and giving it to someone else to distribute for you (i'm talking to consumers now)...do this on your own! instead of making your regular monthly mortgage payment, check and see what the standard principal portion of your payment is and double it. then wait and see how quickly the balance comes down.

and, of course, if doubling the principal is not a possibility in your budget, make any extra principal payment you are able. it is beneficial in both the short- and long-term.

a post by eric (?) a while back noted that you might think this proposal would be highlighted on other than youtube, etc.

i agree, but it seems our society is much more driven by infomercials than anything else - look how they thrive.

Guest 0.10 Dollars($)

Adding payments to your mortgage WILL pay it off sooner (no sooner than same rate HOA program)...however your money will be less liquid than if you used the HOA by CMG. At least you don't have to apply again whenever you need to draw out money.
HOA gives you the ability to pay down way more into the balance of the loan while also still allowing you the flexibility to withdraw whenever necessary.

Guest 0.10 Dollars($)

You mean the HOA allows you to pay extra towards the principal unlike the MMA?

Guest 0.10 Dollars($)

Any mortgage allows extra payment towards principal unless there is a prepay penalty. The advantage of the HOA is accessing the $ that has been paid to the principal with the ease of regular checking account functionality. This allows you to put all of your money towards the mortgage paydown...even if just temporarily.
The other advantage is not having to come up with a payment should you lose your job or for whatever reason that exists. This is because they do not have a minimum amount due, simply a limit that may not be exceeded. Interest is simply added to the balance on a certain day of the month.

Guest 0.10 Dollars($)

Thanks you all for the input. It is an eyeopener.

larry · Joined: 27 Jun 2007 Posts: 3245 460.30 Dollars($)

Hi H.I.M.

Welcome to the forum.

I think you have good knowledge on this industry. Are you a mortgage adviser or a lender?

Feel free to join this community as a Mortgage professional. There are so many Mortgage professionals and lenders in this community. Please have a look at http://www.mortgagefit.com/community/professionals.html

Hope you will enjoy participating in this forum.

Best of luck,
Larry

Guest 0.10 Dollars($)

Hi Larry,

I'm not a professional. Actually, I manage movie theatres... but I love numbers, analysis, problem solving and do a lot of research. Maybe one day I could be a broker; I'm just not very good at sales.

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