How the Software Works
There are three things your clients need for this to work:
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Detailed Budget
Your Clients need to look at how much money they earn each month and balance it with how much they are spending each month. The program works more efficiently if they are making more than they are spending.
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Line of Credit (LOC)
Your mortgage acceleration program will use a line of credit as a tool to drive the program. The line of credit must have the capacity to operate just like a checking account and must be set up with an open-end interest calculation. Together with your web-based system, this creates an environment in which the money in a client's line of credit account generates an interest cancellation on their primary mortgage.
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Software Program
Your mortgage acceleration program will contain an algorithm that systematically creates the highest interest savings possible in the least amount of time. Each client, due to the uniqueness of their situation, requires a custom plan to achieve optimal results.
Homeowners in Australia and the United Kingdom have been using a similar system for the last 12 years. In fact, more than a third of the households in Australia and about one fourth of the households in the United Kingdom are currently using a program to accelerate their equity.
Many fortune 500 companies use a banking technique called a "sweep account". This technique is used to reduce the daily calculated interest. Big companies started moving or "sweeping" their bank accounts daily to an outstanding interest bearing loan to reduce average daily interest.
The media has recently done several stories on the "mortgage checking account" programs. In May of 2007, the Las Vegas NBC news affiliate Channel 3 did a special on how the program was starting to get more and more popular in the United States.
Also, MSN Money recently published an article called "A new way to pay off your house."
Essentially, your program will allow your clients to use proven and tested principles to help beat the banking industry. In life, we are taught to earn money and put it into a checking or a savings account to protect it and maybe earn a little bit of interest. By doing this, we are giving the bank a loan so it can invest our money and make a higher return. You can help your clients make their money work for them through a line of credit account that is used just like their checking account. It’s easy and it does not require more work than your clients are already doing now with their checking accounts.
