I was wondering the same thing. I have seen the advertisements, and can't imagine it could be true... however... if it works, or even if it doesn't... shouldn't we be able to talk about it?
I deleted the thread because it was started with the intent of advertising. As a moderator we are charged with protecting the newbie from fraudulent and misleading information as well as attempts to advertise. The company that markets that concept is more than welcome to contact the owner of the website and become a channel partner. Then he can actively market his program and it may be discussed.
The thread actually started as a discussion about mortgage cycling. Then the creator decided to "advertise" later. Can't you just delete the messages that are actually advertising?
Thank you. I am all for deleting ads from message boards.
Now, to anyone who knows anything about mortgage cycling (the actual process involved) please post what you know. I am a REALTOR in Las Vegas, and I have many clients who would benefit from this process... were it to work. And would benefit from the warning... if it's a scam.
I have not actually done mortgage cycling, however, I do understand the process.
I think the main issue that should be pointed out, as I stated in the thread that was deleted, is the process assumes that you actually have extra money every month and are willing to put it towards your mortgage instead of your emergency savings account, or to Circuit City for the big screen, or to whatever else you may want.
Now, if you do have the extra money each month and want to pay down your mortgage, then the same result can be obtained by simply sending in the extra money each month to your mortgage company. There is really no difference between adding more to each mortgage payment and doing the mortgage cycling process.
If you have any more questions, just let me know. However, I don't want to outlay the exact process here because that would not be fair to the creator. I will, however, give you my opinions.
The author, by repeatedly telling you that it's NOT a biweekly mortgage, is a little deceptive.
I mean, hell, at least with a bi-weekly mortgage, you don't have to change a single aspect of your cash outflow except for the timing.
However, in his little advert, he makes it a little obvious:
Quote:I DO NOT recommend Mortgage Cycling to someone who is living paycheck to paycheck.So, if you have budgeted a certain amount to paying off your house, you're going to have to "budget" more, it would seem.
Here's a nice little page that sums up a miracle plan to do just that: Mortgage Education
from that site:
Quoteay an extra $75.00 a month, the loan pays off early by 18 years!That sounds a lot like the "Pay off your loan in 10 years" to me...
Additionally, his "risk free" 100% guarantee seems like crock of crap as well -- read carefully...
Quote:I personally guarantee if you make a diligent effort to implement Mortgage Cycling by following my step-by-step instructions... you'll build at least $40,000 worth of home equity and pay off your home in 10 years or lessSo, if you can't afford to do it... you can't MAKE that diligent effort to implement it or follow his "simple step-by-step instructions" and you're out of luck, buddy... after all... he DID warn you that it wasn't for people who were living paycheck to paycheck... but, since he doesn't really give out these details of his weasel guarantee until the very end, chances are slim that you'll read that, and buy it FAAR before you make it to that point. His guarantee is crap, because his product is likely to be crap as well.
As soon as you read the report, you'll say "Yeah, buddy, THAT was obvious... I pay more more money, and I own more of my house sooner... I can't believe I just paid $70 for this crap..." Then you read the guarantee, and see that there's basically no way he'll ever have to pay. Because it DOES work... you're just getting screwed by his misrepresentation of the blatantly obvious.
I haven't read his book... I'm pretty sure I won't... It seems far too sketchy. It seems like a high price being charged for something really, REALLY simple...
pay your principal early... you'll accrue less interest that way.... "duh"
Quote:The above results are based on a $150,000 30-year mortgage at
7% interest using exact examples shown in my report.
Using the example from his website and performing simple mortgage calculations:
11 year loan for $150k at 7% interest... creates a monthly payment of $1,632.62, and you pay interest of only $65.5k
His figures:
10.9 years, interest paid: $64.9k - equity after 3 years $45k -- (okay, so you front load it, pay more earlier, get more equity sooner... no brainer)
So, you pay $1632 a month instead of $997 (hell, that's not quite double... sounds like a plan!) and you're paid off in 11 years. I'm sorry, I don't live "paycheck to paycheck", by any stretch of the imagination... but that certainly doesn't give me an additional $700 a month to throw around.
So, use a mortgage calculator -- determine how soon you want to "own" your house... make payments on that schedule -- you're done.
That'll be $69.50 --- please paypal it. 8-)
[ Edited by daiv on Date 05/04/2004 ][ Edited by daiv on Date 05/04/2004 ]
Well, unfortunately for the author, I agree with almost everything you have stated above, and I have read the book, and thought exactly what you did. I did, however, get my refund because of other circumstances.
I think you hit it on the head....send in more and more money and you own more of your house sooner.
Other forms of debt are generally more expensive than mortgage debt. If anyone is thinking of increasing credit card balances or taking out unsecured loans or whatever, they will end up paying the second lender the interest money they would have saved (and then some) on the mortgage payment. Doing this only makes sense if you can get a 0% deal (or close to it). If you have a mortgage that has a higher interest rate, maybe it is time to refi.[ Edited by InfoSponge3000 on Date 05/04/2004 ]
That's just what I thought. Some 'trick" huh? If something sounds too good to be true... it probably is. And with interest rates as low as they are... who would want to pay off their loan early? lol...
Thanks for the imput guys. I appreciate it. As will my clients.
Well, there ARE some investment vehicles that are returning slighly greater than average returns due to unusual market conditions.
For example, I can get a AAA tax-free municipal bond returning about 7%. So, if I were to take out a second mortgage on my house, and put the rest into a bond with a 2 point spread from my home loan, I could make a little extra money off of it. But this is a LOT of work, headache and risk (in case the bond market tanks and I'm in need of quick cash)
I mean... a 2 point spread on a $200k house, would net you $4k over the course of a year (or slightly less when you pay down miniscule amounts of principal)
I don't know about you guys, but there are a few better ways for me to make $4k than have my permanent personal dwelling mortgaged to the hilt.
well, he has a new website advertisement now, and the price has dropped significantly. Only 27.95 now, instead of 67, and even 120 before that. Wonder why?? Huh??
I ran across mort cycling a long while back and was skeptical. I tried figuring it out before throwing away $70. From my reseach, I have come to believe that the seller simply ran guerilla marketing via posting threads, search engines, and dedicated domains with phony reviews. I also believe that the whole process is just the transfer of the mortgage balance to home equity loans..,thereby attaining the advertised goal, paying off your mortgage, but at no real improvement of your debt situation. I also believe the patent will be forever pending.
Sure you can get private money. But I bet the interest rates will be higher than 8-9 percent and you might even get hit with points right off the bat. Your debt to income must be in line or your setting yourself up for failure.
Pay for credit repair and then do a rapid rescore once the repairer tells you to.
That is really low credit, one of my office staff has a 625 and he had 4 properties go into foreclosure last year. Two were SS workouts and two went to auction.
[addsig]
private funding is usually for properties that will be turned over withing 6 months to a year. and the interest rate is usually 10-15% with a couple points. some may even want a share of the profits. this and hard money are usually only used by pretty large operating investors who can afford to pay it or people with enough of a spread in a deal.
I was wondering the same thing. I have seen the advertisements, and can't imagine it could be true... however... if it works, or even if it doesn't... shouldn't we be able to talk about it?
I deleted the thread because it was started with the intent of advertising. As a moderator we are charged with protecting the newbie from fraudulent and misleading information as well as attempts to advertise. The company that markets that concept is more than welcome to contact the owner of the website and become a channel partner. Then he can actively market his program and it may be discussed.
Good Luck,
Shawn(OH)
The thread actually started as a discussion about mortgage cycling. Then the creator decided to "advertise" later. Can't you just delete the messages that are actually advertising?
Dear Moderator,
Thank you. I am all for deleting ads from message boards.
Now, to anyone who knows anything about mortgage cycling (the actual process involved) please post what you know. I am a REALTOR in Las Vegas, and I have many clients who would benefit from this process... were it to work. And would benefit from the warning... if it's a scam.
Thank you in advance.
Jennifer
Jenny,
I have not actually done mortgage cycling, however, I do understand the process.
I think the main issue that should be pointed out, as I stated in the thread that was deleted, is the process assumes that you actually have extra money every month and are willing to put it towards your mortgage instead of your emergency savings account, or to Circuit City for the big screen, or to whatever else you may want.
Now, if you do have the extra money each month and want to pay down your mortgage, then the same result can be obtained by simply sending in the extra money each month to your mortgage company. There is really no difference between adding more to each mortgage payment and doing the mortgage cycling process.
If you have any more questions, just let me know. However, I don't want to outlay the exact process here because that would not be fair to the creator. I will, however, give you my opinions.
Mike
Do you smell scam? I certainly do...
ay an extra $75.00 a month, the loan pays off early by 18 years!That sounds a lot like the "Pay off your loan in 10 years" to me...
guarantee seems like crock of crap as well -- read carefully...
The author, by repeatedly telling you that it's NOT a biweekly mortgage, is a little deceptive.
I mean, hell, at least with a bi-weekly mortgage, you don't have to change a single aspect of your cash outflow except for the timing.
However, in his little advert, he makes it a little obvious:
Quote:I DO NOT recommend Mortgage Cycling to someone who is living paycheck to paycheck.So, if you have budgeted a certain amount to paying off your house, you're going to have to "budget" more, it would seem.
Here's a nice little page that sums up a miracle plan to do just that: Mortgage Education
from that site:
Quote
Additionally, his "risk free" 100%
Quote:I personally guarantee if you make a diligent effort to implement Mortgage Cycling by following my step-by-step instructions... you'll build at least $40,000 worth of home equity and pay off your home in 10 years or lessSo, if you can't afford to do it... you can't MAKE that diligent effort to implement it or follow his "simple step-by-step instructions" and you're out of luck, buddy... after all... he DID warn you that it wasn't for people who were living paycheck to paycheck... but, since he doesn't really give out these details of his weasel guarantee until the very end, chances are slim that you'll read that, and buy it FAAR before you make it to that point. His guarantee is crap, because his product is likely to be crap as well.
As soon as you read the report, you'll say "Yeah, buddy, THAT was obvious... I pay more more money, and I own more of my house sooner... I can't believe I just paid $70 for this crap..." Then you read the guarantee, and see that there's basically no way he'll ever have to pay. Because it DOES work... you're just getting screwed by his misrepresentation of the blatantly obvious.
I haven't read his book... I'm pretty sure I won't... It seems far too sketchy. It seems like a high price being charged for something really, REALLY simple...
pay your principal early... you'll accrue less interest that way.... "duh"
Quote:The above results are based on a $150,000 30-year mortgage at
7% interest using exact examples shown in my report.
Using the example from his website and performing simple mortgage calculations:
11 year loan for $150k at 7% interest... creates a monthly payment of $1,632.62, and you pay interest of only $65.5k
His figures:
10.9 years, interest paid: $64.9k - equity after 3 years $45k -- (okay, so you front load it, pay more earlier, get more equity sooner... no brainer)
So, you pay $1632 a month instead of $997 (hell, that's not quite double... sounds like a plan!) and you're paid off in 11 years. I'm sorry, I don't live "paycheck to paycheck", by any stretch of the imagination... but that certainly doesn't give me an additional $700 a month to throw around.
So, use a mortgage calculator -- determine how soon you want to "own" your house... make payments on that schedule -- you're done.
That'll be $69.50 --- please paypal it. 8-)
[ Edited by daiv on Date 05/04/2004 ][ Edited by daiv on Date 05/04/2004 ]
LOL,
Well, unfortunately for the author, I agree with almost everything you have stated above, and I have read the book, and thought exactly what you did. I did, however, get my refund because of other circumstances.
I think you hit it on the head....send in more and more money and you own more of your house sooner.
Good luck to ya
Y'know... even though I've figured the rest out... I can't figure out one thing...
How does the phrase "Mortgage Cycling" apply to what he's talking about?
well, its a "cycle" because you use others forms of debt to float mortgage amounts on and they are "cycled"
Other forms of debt are generally more expensive than mortgage debt. If anyone is thinking of increasing credit card balances or taking out unsecured loans or whatever, they will end up paying the second lender the interest money they would have saved (and then some) on the mortgage payment. Doing this only makes sense if you can get a 0% deal (or close to it). If you have a mortgage that has a higher interest rate, maybe it is time to refi.[ Edited by InfoSponge3000 on Date 05/04/2004 ]
That's just what I thought. Some 'trick" huh? If something sounds too good to be true... it probably is. And with interest rates as low as they are... who would want to pay off their loan early? lol...
Thanks for the imput guys. I appreciate it. As will my clients.
Night all
[addsig]
Well, there ARE some investment vehicles that are returning slighly greater than average returns due to unusual market conditions.
For example, I can get a AAA tax-free municipal bond returning about 7%. So, if I were to take out a second mortgage on my house, and put the rest into a bond with a 2 point spread from my home loan, I could make a little extra money off of it. But this is a LOT of work, headache and risk (in case the bond market tanks and I'm in need of quick cash)
I mean... a 2 point spread on a $200k house, would net you $4k over the course of a year (or slightly less when you pay down miniscule amounts of principal)
I don't know about you guys, but there are a few better ways for me to make $4k than have my permanent personal dwelling mortgaged to the hilt.
well, he has a new website advertisement now, and the price has dropped significantly. Only 27.95 now, instead of 67, and even 120 before that. Wonder why?? Huh??
Here's something I agree with from his site: four out of four dogs.
However, I can't seem to find anything else on the web that "ReviewDog" has reviewed.
lol
It might as well be 7.6 out of 3 upside down firemen...
I ran across mort cycling a long while back and was skeptical. I tried figuring it out before throwing away $70. From my reseach, I have come to believe that the seller simply ran guerilla marketing via posting threads, search engines, and dedicated domains with phony reviews. I also believe that the whole process is just the transfer of the mortgage balance to home equity loans..,thereby attaining the advertised goal, paying off your mortgage, but at no real improvement of your debt situation. I also believe the patent will be forever pending.
You make 50k a year and want to buy a 370k house and fix the basement while making those big payments?
Work on your credit score, good forum here:
http://www.creditboards.com/forums/
D, thanks for the link. I graduated from UNC-G, played baseball there. My family is still in the area.
Sure you can get private money. But I bet the interest rates will be higher than 8-9 percent and you might even get hit with points right off the bat. Your debt to income must be in line or your setting yourself up for failure.
Nate
Pay for credit repair and then do a rapid rescore once the repairer tells you to.
That is really low credit, one of my office staff has a 625 and he had 4 properties go into foreclosure last year. Two were SS workouts and two went to auction.
[addsig]
private funding is usually for properties that will be turned over withing 6 months to a year. and the interest rate is usually 10-15% with a couple points. some may even want a share of the profits. this and hard money are usually only used by pretty large operating investors who can afford to pay it or people with enough of a spread in a deal.
suntzupoker
I live less than a mile away from UNCG! I have lived in G-boro all my life, I love it here.