A friend of mine today told me about the "mortgage accelerator program" where a homeowner has a large line of credit to pay their bills as opposed to carrying a traditional mortgage. He asked me what I thought of this concept and my first thought was it sounded fishy. I commented to my friend, who is a financial planner, that mortgage products are usually created with the sole intention of making the mortgage company more money. Not that this is wrong; it's just not always in the best interest of the consumer.
I also thought that since this is a line of credit, the rate would be close to prime or 7.75% currently. I'm curious what any of you know about the "mortgage accelerator" program. If it's a good deal, I'd like to pass it along to my friend and he can share it with his clients. If it isn't a good deal for the consumer, we need to let our clients know. Thanks much and I'll talk to you soon!
Paul
Paul McFadden
I looked at this product and the I think it stinks. For one thing as you stated it is a line of credit. Secondly the customers paycheck must be deposited into an account that is credited to the line of credit, not there bank account. The consumer pays their bills off the line of credit. To me this is self serving and not a good financial planning tool
Hey Apul,
I will be watching to see what people say also. I've heard these pitched a few times but have not spoken to anyone who has done it to hear their thoughts.
Sean Allen
Thanks, Jefferson. I also heard these programs were popular overseas. Still, I hesitate to recommend it to my clients. I appreciate your sentiments.
Joe: Thank you. You're probably right. Unfortunately there's a sucker born every minute! Take care.
Sean: If you hear anything good or bad, let me know. Thanks!
Hi Michael: It sure looks that way although I plan on doing a little more homework. Have a great night!
Paul