rbc 40 year mortgage

rbc 40 year mortgage
Recently I was asked by a professional mortgage on a new program that claims" The average MMA customer will pay for your 30-year mortgage of 100% within 8-11 years with little change in their daily spending habits and without increasing the monthly mortgage payments. "

I now have a few messages about the program and had just brushed it aside until I came across several ads for this program in craigslist. My first reaction was that something with this program is not entirely true, but with as much as I see it, I believe that my clients and customers see it, so I better look into further.

Leave the first look at the primary claim: "The average MMA customer will pay for your 30-year mortgage of 100% within 8 a.m. to 11 a.m. years with little change in their daily spending habits and without increasing monthly mortgage payments." Sounds too good to be true. I did the math several times and it just does not agree. Some others also. The following is an analysis by DLM on Scam.com:

If the mortgage on my house is a 30 years mortgage at 6% interest, how exactly can I from my house in 6-12 years, without which my monthly mortgage payment? Even if my mortgage was at 0% interest and 100% of my payment went to principal, it would still take nearly 14 years in full, without which my mortgage payment.

Interest is interest, whether it is in a first mortgage or a HELOC. If I were a $ 100,000 mortgage at 6% and I pull $ 20,000 from a 6% HELOC to pay after my first mortgage, I still have $ 100,000 of debt at 6%. It is now only on two loans. Let us, therefore, separated from the fact hype. FACT: You can save if your HELOC interest rate is close to your first mortgage interest rate. However, the interest savings only amounts to an average of $ 10-15 per month with the above example of $ 5000 per month income. What does that translate? About 1.5 to 2 Years Your mortgage term (paying off your 30-year mortgage in 28 years). This is a bit different than what they promote.

In the presentation, they report a sample of the software. I filtered through the numbers that she has (payment of a 30-year $ 150,000 mortgage at 6.5% in 8.4 years). The mortgage payment was $ 850 per month (actually closer to $ 950). You even have the reports difficult to read, but here is how they agreed to pay off that mortgage in 8.4 years: You have $ 5000 in monthly income and $ 2845 per month on the "System "(note that the amount is three times the original 30-year amortized payment). My first question is, how exactly do you triple your mortgage payment," "without your current standard of living" and "without which your monthly mortgage payment "?

Now here is the good part: Suppose that the original loan amount of $ 150,000 at 6.5% interest. The MMA program was to pay him in 8.4 years by applying $ 2845 per month on the first mortgage and / or HELOC. Well, what would happen if we do not have the MMA program and pay only $ 2845 per month on the first mortgage of $ 150,000 at 6.5%? Ready for this ... 5.2 years! This is faster than 3 years with the MMA program, just by paying the same amount directly to your first mortgage. But how many people can afford to triple their mortgage payment anyway?

The quintessence is that UFF in the software industry. This system was developed from a simple concept (accelerated mortgage reduction) and extremely complex, so that the average person could not understand how the numbers really work. And they make it look, how to save $ 100K or more in interest, without which your lifestyle, so $ 3500 for a piece of software that is really worth a small part of this seems like a bargain. Once! They are complicated a simple idea that you think you need them $ 3500 for a piece of software. Think about it.

Tony Rose, MBA, is the owner / founder of http://www.iswami.com, the user-driven web site, links to the most recommended locally owned and operated businesses throughout the United States. Tony is a successful entrepreneur in the areas of real estate, development and web development for more than twenty years.