Equity Accelerator Explained

[Anonymous]

So, I need some advice. New home owner I am getting flooded with the Bi-Weekly payment offers from Suntrust. I understand the program and how it works, I would actually prefer the program  as it will auto deduct on paydays, and lessen the blow on the monthly payments.

I consulted some ex orginators I work with here at my bank and they adviced against the program. Reasoning? The life of an average loan does not jusitfy the program. I was informed the average life of the loan is 3-5 Years, due to people either moving or refi. I do plan on plan on doing a refi at some point, seeing as I have a 6.25 fixed and the current rates are so low it would moronic not too, and I do not plan on selling the property seeing as the location, neighborhood, and value of the property are all incredible, it will make for a great rental one day.

So what do you suggest? And are there any major pitfall to the programs?

Thanks in advance.

Dex

[DallasLoanGuy]

pitfall is the fee they charge to set you up on the program.
the fee is a pittance if you stay in the loan a long time.

did you know? you can do this yourself.... without being on the program.
send 1/12th of the payment extra per month.
or send in partials every 2 weeks.
you dont have to be on the program.

[Anonymous]

Well I understand I can do this myself, that is fine and dandy, but it would take the guess work out of the deal for me, essentially if they were on the backburner coming out everymonth at the same time, I would be perfectly happy with that scenario.

And if I am not mistaken they could be offering for free, what is the normal service charge for the program?

[DallasLoanGuy]

$200 - $500 to get on the program.
it pays for itself over time.