My friend is considering a mortgage service with United First Financial. It would set up an advanced line of credit that his hourse payment would be automatically paid from each month. He would also deposit his pay checks into it and pay his bills from it. Supposedly by doing this he will save thousands in interest over the life of his mortgage. Have you ever heard of anything like this and is it a wise move?
You can find more details about this service here.
http://www.unitedfirstfinancial.com/Default.aspx?tabid=116
2007-11-14 16:00:36 · 2 answers · asked by atomzer0 6 in Business & Finance ➔ Personal Finance
That looks complicated. I'm a smart person and I dont' care for complicated things. Why doesn't he just pay half his monthly mortgage payment every two weeks? That would be an extra payment at the end of the year and shave off about 7 years worth of interest and mortgage term. Most mortgages will allow you to do this without setting up anything special or paying someone the privaledge of doing this for you.
2007-11-14 16:10:08 · answer #1 · answered by voluntarheel 5 · 2⤊ 0⤋
I agree with answer #1, that this is an overly complicated way to save money. You can do pretty much the same thing by using all of your unspent income to pay down your mortgage. That probably isn't a good idea, but if you pay double or even 1.5 times your monthly payment, all of the extra money pays down the principal, which means less interest is charged and you pay off your loan sooner.
After all, why would you want to hand over all of your money to some company? Bank accounts are protected by law for up to $100,000. Can you say the same about this?
2007-11-14 17:05:55 · answer #2 · answered by jellybeanchick 7 · 1⤊ 0⤋