Mortgage Accelerator A Gimmick

Mortgage rates are down, home values have evened out and many mortgage companies are offering deals to refinance homes. At such a time, and with the holidays looming near, homeowners may be considering paying off their mortgage or refinancing in order to free up extra cash. Some lenders are further stirring the waters by offering a “mortgage accelerator,” which is nothing more than another loan that manages your money for you. Your paycheck goes in, your debts come out and the homeowner always has monetary access to their account if they want to withdraw cash.

The problem is that most of the companies offering this service does not compare apples to oranges when pitching the idea. Most of these programs involve taking out a home equity line of credit. If a homeowner would like to reduce their mortgage, the best way to do so is by refinancing at a lower, fixed rate and sending additional payments in towards principle, an act that takes discipline. This is the only benefit of the mortgage accelerator; the program supplies the discipline for the homeowner.\r\n