HELOC vs HELOAN

[wannabeahomeowner]

Does HUD have a Accelerated loan program?

[caganb]

Easy to give advice when you make 4 million a year

[golfnut7772]

The fact that you guys are even giving any considering anything that S. O. has to say has you in a position of "exposure"! You never discussed the real issue here. You never came close to the reason why a conventional mortgage is a negative thing for the American consumer! Please tell me you are not "financial advisers"....

[1Longshadow]

Why would a person type like they were getto...Is that what you learned in school last week? WOW

[MiCasaMiDinero]

There is only a limit of 500 characters per message and the only way to make my comment fit was to write it that way. FYI: I am very well schooled, I could probably teach you a few things

[MiCasaMiDinero]

Normally these "mortgage accelerator" programs r subordinated to 1stloans, I wasnt talkin bout a 1st position heloc.Who would b dumb enuf 2 get a 1stposition Heloc?

As I said b4,it is a simple concept. I understand it and it works. But BELIEVE me when I tell u dat although these "mortgage accelerator programs" r marketed 2 every1, its only suitable 4few dat have small debt, secure large amnts of income & good savings & retirement investments.

Can u say dat avrg Joe has all these qualities? NO!

[karmicdejavoodoo]

And MiCasa - I think you thought I was talking about a 1st position HELOC. Those CAN be dangerous if someone does not use them properly because you are refinancing your home into a variable mortgage tied to LIBOR. However I was not talking about that at all. If you want to accelerate your mortgage... look at United First Financial. This is a DIFFERENT concept where your have financial software to keep you on track and prevent you from mismanaging it. Works great for the right people.

[karmicdejavoodoo]

Anyone who is financially savvy enough to understand the concept of canceling interest by treating the HELOC like a checking account is unlikely to be irresponsible with it. Saving money is never dumb either. However leaving money sitting in a checking account and letting the bank make money from it, when you could be using that stagnant money to save interest. That would be dumb.

[karmicdejavoodoo]

I can't believe that Suze does not even mention that you can cash-flow though the Equity LINE to reduce the amount of interest you pay.... which you cannot on a loan. Meaning this... you deposit your entire income into the HELOC and pay your bills out of it... like a checking account. Interest is reduced, often by half. Also with a LINE you only take out money as you need it... meaning also less interest paid. This makes a LINE cheaper than a loan in most cases, no matter the interest rate.

[MiCasaMiDinero]

While it is true that Mortgage accelerator programs like the one you describe here do work, in real life they only work for very few people that meet certain criterias. If anybody with a house actually used these mortgage accelerator, we would have tripple number of foreclosures now.

The mortgage accelerators, just like the Option Arms are very dangerous financial tools that if you dont know how to use them, you will end up in BIG TROUBLE.

[1Longshadow]

Very dangerious.... Home equity lines of credit are just like credit cards, just alot bigger. They are not meant for undisciplined spending sprees or foolish spending. Cut your 30 year to 12 years and you just saved over 155K on avarage. Soft ware guides your every step and cuts your monthly bill paying time to less than 5 min per month. Save tons of time and money... Start building your retirement today!!!!

[1Longshadow]

Great point! If we had a persoal coach to show us how they work it would make a hugh difference right? The guy that helped me set mine up does just that. Did I mention that I will pay off my house 22 years early and save over 130k...Now I know exactly whenI will be debt free and when I can retire. The light at the end of the tunnel look real clear now that it is less than 9 years away and will be early retirement.

[altha2008]

borrowing to pay bills how dumb

[karmicdejavoodoo]

I'm was not talking about borrowing to pay bills. I was explaining how you can SAVE INTEREST on a HELOC that has a balance on it. If you deposit your paycheck into your HELOC (or even a credit card), and you save (for instance) $10 in interest because that money is sitting in there for a couple of weeks.... that $10 now pays down principle. As long as you are sticking to your BUDGET... treating any revolving debt this way will pay it off faster and save interest.

[karmicdejavoodoo]

See... if you put your money in a checking account at 0%... that makes you $0. If you put your income into your debt, that SAVES you money by reducing interest. Simple and smart concept.

[MiCasaMiDinero]

As I said before it is a simple concept. I understand it and it works but BELIEVE me when I tell you that although these "mortgage accelerator programs" are marketed to everyone, it is only suitable for few people that have small amounts of debt, secure large amounts of income coming in, and have a good cushion of savings and retirement investments.

Can you tell me that average Joe has all these qualities? NO!