Anyone know what mortgage cycling is?

[hx009]

I was surfing the web trying to gather information for setting up bi-weekly mortgage payments on my existing mortgage, when I ran across this site. For the life of me I can't imagine what magic this guy came up with that could achieve basically my entire montly mortgage payment in the first year going towards the principle and not interest. Are there any mortgage gurus out there that could comment on this guy's site/idea? I don't feel like spending $70 for him to send me a report that says "make an extra payment every month!". I'm even more skeptical of the fact that I can't find ANYTHING on google or google groups for "Craig Romero" or "mortgage cycling".

 

[FeathersMcGraw]

I haven't heard of it, but if it sounds too good to be true...

Fortunately, it now only costs $67.95 to find out, instead of $119.95.

 

[hx009]

Originally posted by: FeathersMcGraw
I haven't heard of it, but if it sounds too good to be true...

Fortunately, it now only costs $67.95 to find out, instead of $119.95.

Yes, I especially like the "articles" link on his site... where all the articles are conveniently written by him and no matter what the topic, all end with essentially "My solution is the best. Visit my website and spend $70 to find out why".

 

[Double Trouble]

Think of it in terms of a late-night informercial. "Hi, I'm <insert crook's name here>, and I have a great wealth-building system! Everyone can do it. No effort required. Do you want to be rich? Call now, and for $39.95 we'll send you a book that explains the system!".

I don't care what terms people come up with. You owe a certain amount on the mortgage, and you've agreed to pay a certain percentage of interest on the outstanding balance on the loan. There is no 'trick' to get around it -- if you want to reduce the outstanding balance (principal) on the loan, you have to pay more or pay earlier (such that less interest is charged because of the lower principal balance over time).

 

[new2AMD]

I sent this to 2 of my friends. One is a mortgage boker (owns his own company) and the other is a real estate agent. Ill let you know if I get a response about this.

 

[lancestorm]

Don't you mean bi-monthly, not bi-weekly?

 

[StageLeft]

Sounds like garbage.

 

[hx009]

Originally posted by: lancestorm
Don't you mean bi-monthly, not bi-weekly?

Nevermind. I'm half asleep this morning.

 

[mugs]

Originally posted by: lancestorm
Don't you mean bi-monthly, not bi-weekly?

I think semi-monthly is actually right, but since everyone uses the terms improperly it's become accepted that you can use both bi- or semi- to mean "every other" or "twice."

Like tagej said, you owe x dollars, it accrues interest at a constant rate, the only way to pay less interest is to pay it off earlier.

 

[DBL]

If you do set up a bi-monthly payment, make sure you don't use the system recommended by your current mortgage holder. Mine is through Chase and they keep sending me offers to change to a bi-monthly system to pay my mortgage off sooner. The thing is, when you read the fine print, they charge some sort of initiation fee and other crap, which completely kills the deal, considering you can set up the bi-monthly payments on your own, without any help and reap the same benefits.

 

[woowoo]

Divide your monyhly payment (Minus escrow) by 12
Pay that every month to principal
Same thing, No fees......