Understanding Mortgage Accelerator Programs & Risks

Understanding Mortgage Accelerator Programs & RisksMortgage Accelerator Strategies

There are a variety of reasons why a homeowner may want to pay off their mortgage faster than the expiration date on their home loan. However, you must be cautious when considering a mortgage accelerator. There are so many mortgage scams to look out for in today’s day and age, so keep these important guiding points in mind for understanding the risks associated with mortgage accelerator programs:

  • There are two types of mortgage accelerator products to understand. The first type is when you are asked to send money to the accelerator company and they turn that money into biweekly checks that go directly to your mortgage lender. This is a strategy you cannot utilize by yourself, so you will need to keep in mind the $300 initiation fee and $5 monthly fee.
  • The second type of product you can utilize involves depositing your paycheck into a separate bank account that works similar to a line of credit. You draw against the balance each time you pay your bills, and whatever money is left over goes towards paying off your mortgage.
  • While both of these strategies seem favorable since you want to pay off your mortgage sooner, it is important to consider the upfront costs and managing fees. Some homeowners make the mistake of opting for these solutions, not realizing that they will be left with a higher interest rate than the rate on the mortgage itself.
  • Most importantly, before considering either of these mortgage accelerator strategies, be sure to consult your mortgage lender and financial advisor first.

So you can get the knowledge you deserve, contact Avis Lending. We are here to help you be armed with the education you need to ensure every step of your lending process goes smoothly. With offices conveniently located in Irvine, California and Lahaina, Hawaii, we are here to serve as your one-stop shop to all of your west coast home loan needs.

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