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Posted by DP on September 24, 2006, 11:03 pm
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If this is something offered by the holder of the mortgage (and that's what
it sounds like you're saying), then you're probably on much more solid
footing. $45 doesn't sound like a big deal.
>I agree that I am paying for a service that I could be doing on my
> own, but I think that as Bankrate states, this is a good budgeting
> tool, and I am paying for convenience. The fees are negligeable
> relative to the size of my payments (0.6%). The savings are much
> greater. The upfront fee was $45.
>
> I did do this manually on a previous mortgage, and when the house was
> sold I found that the bank had not credited my early payments to
> principle as I had anticipated. There are hidden tricks that banks
> have to take advantage of customers, such as debiting an account prior
> to crediting deposits made the same day in order to charge overdraft
> penalties, even though funds were deposited to cover. I just don't
> trust the banks to properly credit my account, but since this was sent
> to me under the authorization of the bank -- with everything written
> out, I accepted it.
>
> Thanks for the advice.
>
>
>>
>>> After 3 years, I have converted a 30-year fixed rate mortgage payment
>>> from monthly payment to bi-weekly "Equity Accelerator" payments.
>>> Rather than paying with Bill-Pay, these will now be deducted
>>> automatically from my bank account. Has anyone dealt with this before
>>> and figured out what changes to make in Quicken? (Q2007 Premier)
>>
>>
>>Upon further review:
>>
>>1) I jumped to the conclusion that you are using a third party to handle
>>your mortgage acceleration. Is that in fact what you are doing? Or is the
>>original mortgage holder doing the acceleration? Or is this something you
>>are doing on your own? The problem comes in when a third party gets
>>involved, because they are charging you for something you could do on your
>>own by simply paying additional principal with each monthly mortgage
>>payment.
>>
>>2) I may have overstated when I said it was a scam. What I meant was the
>>third party is charging you a fee to do something you could do on your
>>own.
>>You're making uncessary payments to the third party. Scam or not, it's not
>>necessarily a good deal.
>>One accelerator I looked at just now charges $195 up front and it wasn't
>>clear to me how much of the biweekly payment they would be taking as well.
>>Do you know what the fees are on your acceleration program?
>>Also, here's a brief mention of such programs on the Bankrate site:
>>http://www.bankrate.com/brm/green/mtg/basics7-2a.asp?caret=36
>>
>>
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