Home Ownership Accelerator FAQ test

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Presented by Tom Mac : 

1 Presented by Tom Mac 10 Frequently-asked questions!

10 Frequently-asked questions! : 

2 10 Frequently-asked questions!

#1: Is it for real? : 

3 #1: Is it for real? Nearly 4 years in development Test marketed successfully from 2005-2009 Loan serviced by Ameriprise Bank Similar to loans popular in Australia, Great Britain since early 1990’s

#2: Who is the ideal target client? : 

4 #2: Who is the ideal target client? Money-savvy Positive cash flow Reasonable size mortgage compared to income Reasonable DTI. Great credit Good money-management habits

#3: I could just prepay my current mortgage on my own. : 

5 #3: I could just prepay my current mortgage on my own. Requires huge discipline Can’t get it back Typical extra payment is only a fraction of excess income The balance of your money sits in the bank Lazy money, waiting to be spent

#4: What about rising interest rates? : 

6 #4: What about rising interest rates? It’s not about the rate anymore! It’s about HOW MUCH INTEREST you pay on a LOWER PRINCIPAL balance Parking outside funds in the loan account can completely offset the impact of rising interest rates I paid 6% APR and $400,000 in interest I paid 8% APR and $250,000 in interest

#5: If I pay off early, I’ll lose my interest tax deduction! : 

7 #5: If I pay off early, I’ll lose my interest tax deduction! Good news…you WILL! Interest is not in your best interest! Pay $3 in interest to get a $1 deduction? Want larger tax deductions? Get a higher rate! Interest is still deductible while you have the loan

#6: Where’s my money ---really? Is it FDIC insured? : 

8 #6: Where’s my money ---really? Is it FDIC insured? Money is swept against your loan balance daily. Any intra-day balance is FDIC insured, But no end-of-day “pile” to insure. Your cash is converted to home equity Saves interest Higher effective yield on your money No “pile” anymore - - filling the hole instead. 24/7 access to your money

#7: Can my line be reduced or frozen? : 

9 #7: Can my line be reduced or frozen? Yes, under certain conditions set forth in Reg. Z. See the line of credit agreement for full details. Substantial property value decline Lender reasonably believes borrower won’t be able to pay Borrower is in default Government action or notification APR reaches the cap “Never put all of your eggs in one basket” Home Ownership Accelerator is no different Maintain financial flexibility to handle any situation Consult financial advisor for guidance

#8: What if my home loses value? : 

10 #8: What if my home loses value? No different than any other mortgage. You owe a set amount If you pay off faster, you’re less likely to be underwater.

#9: What’s the payment? : 

11 #9: What’s the payment? There IS a payment: interest is due every month.

#10: Why do I need to deposit my payroll? : 

12 #10: Why do I need to deposit my payroll? Depositing funds is critical driver of performance Get loan balance down, start money working Payoff timing and interest costs are improved by Earlier deposits Later expenses

Thank you! : 

13 Thank you!

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