Wednesday, August 29, 2007

No magic answer to paying off your mortgage early

One of the American dreams is to live in a home with no mortgage. Unfortunately, a lot of scammers (and some banks) are coming up with some creative ideas to get folks to pay them money for the secret. I first heard of this on the Dave Ramsey radio show a few weeks back on the latest Early Mortgage payoff gimmick Money Merge Account.

Here is a news program that shows the Money Merge Account

You PAY $3500 for a special calculator that will show you how to pay off your mortgage must faster. Your putting your paycheck into a home equity line of credit vs a checking account. This news report sounded more like an advertisement than a news report.

My thoughts take the $3500 and apply it to your mortgage as a mortgage principal payment. You can pay off your mortgage early if you live below your means, have control of your finance and be aggressive on paying extra.

Check out any of the FREE mortgage calculators that are available on the Internet and see what you need to do is pay off your mortgage early.


Anonymous said...

For viewers who are interested here are a few links that go into the facts of this program in more detail:

Mommy said...

Wow, sounds a bit strange to me. :(

the Prince of Thrift said...

I wish my computer would let me hear this one, but oh well. Sounds like something everyone needs to be aware of.

Anonymous said...

There is an ad for Sydney Financial Group on your site. It describes the same product but does not tell how much they charge for it; you have to send your phone number to them for more info. Do you know anything more about what they have to offer, like how much it costs?

Louise said...

You make a very good point. The basics are to spend less than you earn and pay as much off pricipal as you can.
The old paper and pencil method works. There are free amoratisation calculators online and loan agents will run calculations on different loan types they offer for nothing.
Spending heap of money on sofware to do calulations seems wasteful and it would be better applied to the mortgage.