mortgage prepayment programs-for a price? (Full Version)

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BJinWA -> mortgage prepayment programs-for a price? (8/21/2008 1:15:33 PM)

i remember reading a thread on here, (but can't find it now) about a mortgage prepayment program that you buy for an insanely high price, that managed funds and made multiple principal payments each month, based on the float. seems to me there was a line of credit involved. can anyone enlighten me as to how they work?

a friend of mine wants to spend $3,500 on one and i told him without more information, it seems to me he would be better off making a $3,500 principal payment.



GroupW -> RE: mortgage prepayment programs-for a price? (8/21/2008 5:51:37 PM)

You can generally do that sort of program much cheaper than $3500. Basically, it just involves a regular mortgage and a mortgage line of credit. Do a search on the net - there are several resources out there that can explain it better than I can.



pastorhawk -> RE: mortgage prepayment programs-for a price? (8/21/2008 6:00:05 PM)

This was just covered in our Dave Ramsey Financial Peace Class last night.
He says it is a terrible idea. Because you can usually just prepay on your own without their help. I like the idea of putting that $3,500 on the principle.
Just pay extra every time you make a monthly payment. That is prepaying without paying someone else to do it for you.



Ps103 -> RE: mortgage prepayment programs-for a price? (8/21/2008 11:59:14 PM)

Two things, if you are going to do it (yourself--not some rip-off program):

1. Make sure your lender allows for it. Most do, but there are some that don't.

2. Make sure you specify that the extra amount goes to principal.



Random -> RE: mortgage prepayment programs-for a price? (8/22/2008 6:12:02 AM)

I believe it was called Money Merge or something close to that, but I agree with the others, it is NOT worth paying someone $3500 for something you can do yourself for free.



crownofbeauty -> RE: mortgage prepayment programs-for a price? (8/22/2008 6:47:52 AM)

Yes, it's called Money Merge. I inquired about it on a thread here some time ago. We never did it because I just couldn't justify spending that amount of money up front for the software to do the program. In fact, the person that was trying to sell it to us (a friend of ours) is no longer doing it himself.

ETA: Here is some information on the program: Money Merge Account



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