mortgage007-did you read that post at all?
I took the assumptions based directly from that example that you keep referring to, I think I'm rather confused with what you are talking about.
I worked the math and inequivically proved that it's better simply to put your cash towards your mortgage vs use the system you keep going on and on about.
I can only assume that you are somehow compensated on how many suckers you get signed up for that program, or perhaps are partial owner.
Unfortunately it's folks that spout disinformation like you that give a lot of people in the mortgage industry a bad rap.
I'm not trying to say that the program doesn't work at all - it does. What I am saying, though, is that it is a significantly better decision to not sign up for your program and just pay extra money on your mortgage yourself. You'll pay significantly less in fees (like the $3500 that is charged for the system) interest, ect.
Regarding this statement -
Quote:
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YOu have made so many incorrect assumptions in you prvious post. The system tells you to pay bills when they are due. You deposit your income as you received once per week, twice per month or however you are paid. It makes littel difference. YOu are still missing the interest rate concept of higher rate vs. lower rate on mortgage
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The system assumes (calculated from the average daily balance shown on the HELOC in the example) that all of your bills are paid on the 31st of each month and both your and your spouses full monthly income is deposited on the 1st of each month.
Perhaps it doesn't make much of a difference to you, but to the majority of folks the literally tens of thousands of dollars extra that they'll be paying in interest if applied to a more realistic situation (bi-weekly or bi-monthly pay, debt payments due throughout the month) The average daily balance would be significantly (read: likely 1/3-1/2) higher, probably costing an additional $12,000-$24,000 in interest over the course of the system that is negated by the unrealistic assumptions that the system doesn't explicitly disclose in it's example.
I think, my friend, that you are missing the concept between a higher interest rate and a lower interest rate.