Ok I have a GMAC Mortgage (FHA 6%). Only have had it since May. They have a program called "Equity Accelerator Program". In theory it sounds great.
Personalized estimate of Equity Accelerator® benefits for you:
Save $39,015 in interest. Pay off your mortgage 6 years and 1 month earlier - 73 fewer mortgage payments. Simplify your budget with withdrawals that match your paydays, rather than the mortgage due date. Simplify your life with automatic mortgage payments. Enjoy peace of mind, knowing your payments are made on time, every time.
Save $39,015 in interest. Pay off your mortgage 6 years and 1 month earlier - 73 fewer mortgage payments. Simplify your budget with withdrawals that match your paydays, rather than the mortgage due date. Simplify your life with automatic mortgage payments. Enjoy peace of mind, knowing your payments are made on time, every time.The catch "The one-time enrollment fee is $295 (collected from your first extra principal payment) and the monthly participation fees are $5.42 (a portion is collected with each electronic withdrawal). That's a small amount compared to your projected interest savings of $39,015.08. There is no fee for payment changes or cancellation. You can even transfer the program to another loan free of charge! Your savings in the amount of $39,015.08 is after providing for fees."
Just was wondering if it is worth the fees. The thing is I already pay a month in advance. For example yesterday I just made the payment for November. I like to stay ahead one month for cushion and to make sure I never go late. Still trying to rebuild my credit. I don't have a lot of money in savings that I have to pay with. Won't say I am living paycheck to paycheck but if I miss a month of work, I would be in trouble.
I would go with the Bi-Weekly program since I get paid every other week. Advice?
I have a new GMAC refi from May, and I saw that also.
I send an extra $200 toward principal every payment, my 30 year mortgage will be paid off in 15 years this way, saving that interest, ect.
My point, is that you can do this yourself, no need to pay anything extra to them.
hth
nicemann wrote:Ok I have a GMAC Mortgage (FHA 6%). Only have had it since May. They have a program called "Equity Accelerator Program". In theory it sounds great.Personalized estimate of Equity Accelerator® benefits for you:The catch "The one-time enrollment fee is $295 (collected from your first extra principal payment) and the monthly participation fees are $5.42 (a portion is collected with each electronic withdrawal). That's a small amount compared to your projected interest savings of $39,015.08. There is no fee for payment changes or cancellation. You can even transfer the program to another loan free of charge! Your savings in the amount of $39,015.08 is after providing for fees."Just was wondering if it is worth the fees. The thing is I already pay a month in advance. For example yesterday I just made the payment for November. I like to stay ahead one month for cushion and to make sure I never go late. Still trying to rebuild my credit. I don't have a lot of money in savings that I have to pay with. Won't say I am living paycheck to paycheck but if I miss a month of work, I would be in trouble.I would go with the Bi-Weekly program since I get paid every other week. Advice?
