Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277))

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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I have not.  The best way to pay down a mortgage is to pay more toward principal every month. 

Keep it simple. The fewer hands inside the pocket the quicker it will be paid off and the money goes to reduce the loan not a third-party pocket. 

Mar 01, 2021 04:42 PM
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I haven't but, if there's a cost, I wouldn't. We can pay off our own mortgages in 5-7 years by doubling-up on the monthly principal payments! I'm not going to pay someone to orchestrate that for me! LOL

Mar 01, 2021 05:45 PM
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John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I did see a presentation from a lender similar to what you describe, Raymond Henson, SRES, GRI 

It strikes me a similar to a line of credit. You get salary deposits directly into the loan account to reduce the loan and pay bills directly from the loan account.

Interest on the unpaid balance is reduced by early payments even though total  borrowings go up and down.

It seems like it would present problems when it comes to tax time but there is probably a way to make it work. Seems like an accounting challenge but maybe there is a way to simply that aspect.

Mar 01, 2021 05:06 PM
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Liz and Bill Spear
RE/MAX Elite 513.520.5305 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Raymond, almost sounds like a variation on a HECM type loan.
And I've not watched the whiteboard, but I'll put this in the category of "when it sounds too good to be true, it probably is too good to be true".  Companies don't offer programs like this unless there's something really good in it for them.  Bill

Mar 01, 2021 04:53 PM
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Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Kathleen Daniels, Probate & Trust Specialist said it best.  Unless your mortgage has a prepayment penalty (rare), just pay extra every month.  You can knock years off the term of the loan.

Mar 01, 2021 05:41 PM
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Never heard of it.  Seems like you're trading one loan for another.

Mar 01, 2021 06:57 PM
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Raymond,

I rhink that Kathleen Daniels, Probate & Trust Specialist gave you the best answer...A

Mar 01, 2021 07:32 PM
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Steve Higgins
RE/MAX Kelowna - Kelowna, BC

I haven't heard of it. We just doubled up our bi-weekly payments to pay it off faster also once a year we are allowed to put down 10% of the total of the original mortgage that also goes straight on the principal too. I would stick with those payment methods, that I can control and it doesn't cost me anything.

Mar 01, 2021 06:07 PM