http://www.nightingale.com/LandingPages/tpromo_tdiwl7.aspx
There are supposedly forms you can complete that enable you to apply more to the principal (less to the interest) without exceeding your normal monthly payment. I called my mortgage company; they said there are no such forms and that the principal and interest are amortized throughout the 30 years of the loan... That the amoritization schedule could not be altered... That you could only reduce your principal by paying more than your monthly payment (and indicating that the extra should be applied to principal). If that's so, how could the system possibly work? They (John Cummuta) told me I could pay off my 30 year loan (27 left) in 7 years.
2007-09-21 07:07:41 · 2 answers · asked by Anonymous in Business & Finance ➔ Credit
If this guy wants money for his debt reduction system, just say NO! It's undoubtedly a scam.
He might be referring to the infamous bi-weekly payment system. Typically you have to pay $300 or $400 to set this program up. Don't waste the money. The trick is bi-weekly payments create a 13th month payment each year.
You can easily pay off your mortgage early by adding money earmarked for principal only. Even $10 a month will help pay down the principal faster.
2007-09-21 08:53:47 · answer #1 · answered by bdancer222 7 · 4⤊ 2⤋
John Cummuta
2016-10-02 05:29:17 · answer #2 · answered by trythall 3 · 0⤊ 0⤋
Actually, I've used it and it does work. I stopped prior to paying off my Mortgage, but paid of substantial other debt quickly following his plan. Quite simple, but I wouldn't convince you here. Nothing earth-shattering, just a simple plan to guide you to paying extra on your debt each month. Generally, your Mortgage will be the last of your debt you will focus on, but by the time you get to it, you will have plenty of money to pay it down quickly. It's actually all common sense. Something a lot of us need to have pointed out.
2014-05-31 06:09:17 · answer #3 · answered by Lyle B 1 · 1⤊ 0⤋
I think the old adage "If it sounds too good to be true, it probably is" might well apply here.
There are any number of supposed programs available that can make you debt free, but I am rather leery of buying into any of their claims. I think doing it the old fashioned way, via paying in a timely manner and applying extra to the principal when you can, would be your best way. Your mortgage company would know the particulars of your loan, and the information that they gave you when you called them seems more realistic than a claim from an unknown entity.
Just a shot in the dark here, but I am pretty sure that this program you referenced is only available to you if you pay for it? It would probably benefit you most to take the cost that they would charge and apply it to your principal. :)
Have a good day!
2007-09-21 07:37:35 · answer #4 · answered by haggamuffn 2 · 7⤊ 2⤋
The general consensus is the his "system" should be called "Transforming [your] debt into [his] wealth" and it is pretty much a waste of money. You pay him and he gives you advice that you could get for free anywhere else. There is nothing magical that can be done. You can't change the laws of math of interest. If you owe $X.xx, then you have to pay back $X.xx (plus interest). No "system" is going to change that.
2016-03-17 03:31:22 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The only way to pay down your mortgage is 1 of 2 ways. The first way is to sign up with a biweekly company or ask the lender if you can pay your mortgage on a biweekly basis. The other way is called rate and term. You can refinance the mortgage by reducing your term of the loan. So you can go down to a 20-yr or 15 yr from a 30 yr term mortgage. Just remember when you reduce the term it doesn't necessarily mean that the payment will be lower. You are crunching 30 years into a lower term. The rate also may be lower too.
When paying the mortgage on a biweekly you are going to reduce your term by 7 years. Maybe that is the John Cummuta system. It will take 23 years instead of 30 years to pay off your mortgage.
You should pay all bills on a bi-weekly basis. This will have a dramatic impact on your credit history. It will jump your credit scores higher.
2007-09-21 07:56:38 · answer #6 · answered by steve s 3 · 5⤊ 5⤋
never heard of it, first check with your mortgage company
to see if there are any penalties for paying off early and
just send extra money into your mortgage payments
each month.
2007-09-21 07:17:40 · answer #7 · answered by Anonymous · 0⤊ 3⤋