All Forum Posts by: Jeremy Z.

You'll notice my responses are to people who come on this forum and knowingly or unknowingly spread misinformation, not to the OP. And for some reason that bugs you every time.

The last one was regarding the bogus "in about 7 years" soundbite. That poster still hasn't provided any details as to the basis of that claim. He won't, because he is just repeating a soundbite that sells weekend seminars. When those types of unfounded claims are used on this forum, they should be called out.

@Brian Cardwell

It's evident that LOTS of people come here with misconceptions about this topic.

You say you are here to help. Which is more helpful?

Simply saying "it works", and allowing those people to continue thinking the heloc is faster than paying the extra amount directly toward their mortgage?

OR...

Clearing up those misconceptions and letting them decide if the potential increased costs of the heloc are worth it to them?

I've wondered this myself. How are the Title companies and closing agents/attorneys involved in these transactions not at least partially responsible? If Morris signed P&S agreements (or other official docs) that were actually between the buyer and Oceanpointe, etc. how did things like that make it through the closing process?

Maybe we'll find out eventually.

@Brian Cardwell - Ha! 🤣

 I admit that a heloc CAN be used, but I also consistently state that it isn't necessary. You yourself have acknowledged it isn't necessary, and that you might try doing it without using a heloc if you were to pay down your mortgage ahead of schedule in the future.

People like myself and Bill F. don't speak up just because we like to be combative. We do it because we see investors and potential investors being misled with statements like:

• Mortgages are front-loaded and designed to keep you in debt
• Helocs allow you to tackle the debt faster due to differences in the way the interest accrues
• The typical mortgage can be paid down in about 7 years using this strategy (I just explained above why this is an incomplete soundbite)

People use these soundbites to sell courses on this topic that you yourself acknowledge are unnecessary. And unwitting targets shell out money that could be used to better themselves elsewhere. When are you going to come to the light, and start dispelling all the myths that are used to promote this topic rather than defending the dark side?? ;)

 If you read through this thread, or any of the other threads on this topic, you will see that the heloc isn't necessary. You could take out a heloc, but not use it and pay your discretionary income toward your mortgage instead. Or don't even take out a heloc until you need it. The results are essentially the same.

My intention is not to attack you personally. The promoters of this strategy spread a lot of misinformation, and I only respond to try and dispel that misinformation.

 I have read that Renatus is one of the biggest promoters of misinformation on this topic, but I hadn't really seen it with my own eyes. This poster has a photo of himself posing with the CEO of Renatus!

I'm not certain if the promoters of this "strategy" are purposely misleading people, or whether they are being misled themselves. Probably a bit of both.

Ah, but alas, a quick Google search shows that he IS selling something. Not a surprise there.

 He didn't just say the method works. He repeated the same sales pitch that always gets thrown around with this method, that the typical mortgage can be paid off "in about 7 years". Based on what??? The average U.S. mortgage amount and the average U.S. discretionary income? Notice those details are never included in the pitch. It's a sales tactic. Richard may not be selling something, but at a minimum he is repeating a sales pitch. It's mumbo jumbo when the other variables are left out. Incomplete info. Misleading.

@Richard Saling

Generalized statements claiming a typical mortgage can be paid off in "about 7 years" using this method are misleading. The actual time depends entirely on how much extra money someone can put toward the debt. If a person only has enough monthly income to cover their expenses, this payoff method won't help them much (it may even prolong the payoff a bit). Conversely, someone with a large amount of disposable income could pay it off in 1 or 2 years. And everything in between. The heloc doesn't accelerate payoff - it's the extra money paid toward the debt.

People should be aware of that before starting this method. Better yet, they should use online calculators or spreadsheets to model out how long it will take them to pay off the loan based on the extra amount they anticipate being able to pay toward the debt each month.