Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : New mortgage program for those who can afford it

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August 22, 2005

New mortgage program for those who can afford it

This totally new mortgage program is offered by CMG Mortgage Services based in San Ramon, California. It is called "Home Ownership Accelerator". As the name implies, this mortgage is for the people who want to pay off their mortgages much faster than common 30 or even 15 year amortized loan allows. This home loan is set like a checking account, with homeowners regular income directly deposited each time they are paid and deducted from the balance of the loan. The homeowners can then write checks against the loan for their regular bills and expenses, which pushes the balance back up.

The obvious trick is to have financial discipline and write these checks very carefully. Otherwise, if the total amount of checks exceeds the amount of deposits, such a mortgage will quickly lead to a negative amortization thus turning the whole idea around. It will become "Home Ownership Decelerator".

Interesting, some say that you can achieve the same result with conventional 30 year mortgage doing extra payments to the principal, or take 20, 15 or 10 year mortgage, but here is the whole story with all the opinions at New Mortgage.

 
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Bad Credit Advisor online magazine provides daily news about credit, debt and mortgage. We aren't paid to mention specific deals or products. We cover what we think is interesting as industry professionals ourselves.

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