I was introduced to United First Financial and their mortgage acceleration program at a Business Networking International chapter meeting. There was a man who was an invited guest who was explaining how people could build equity in their home more rapidly simply by using the web-based software. They didn't even have to change their lifestyle or cut back on spending. Being a licensed mortgage broker, I wanted to hear more.
He said that the web-based software program, which was available for $3,500.00, would assist homeowners in paying down their mortgage in one third to one half the time without changing their lifestyle. I was amazed and astounded . I wanted to hear more, so we scheduled an appointment.
We watched a DVD during our appointment. It covered that, by someone using their discretionary funds more wisely, they could pay the remainder of their 30 year mortgage in about thirteen years. Sure sounded interesting to me. He also explained that as a mortgage broker I could earn a lot of money selling the software.
Some time later I received a call from a friend from the BNI group. She wanted to know if it would be a good idea for she and her husband to get a Home Equity Line of Credit, pay off all of their credit card debt, get the software program, and be able to pay off the remaining 11 years of their 15 year mortgage in as little as 7 years? On the surface the answer is YES!
However, here are some additional questions. How does the software foresee the future? What if there are changes in the economy, your job status and as a result your income? What if your lender, as so many lenders have, "locks down" your HELOC and you can't take any money out? What if you have a medical emergency and all of your "extra" money is in equity in your home as a result of the rapid pay down advised by the software? What then? Refinance? At what cost?
These are some of my concerns. Also, as a licensed mortgage broker and someone who has been in financial services for over 25 years, I would question the credentials of those marketing this product. After all, isn't your home your largest and most investment? Do you really want someone who just came over from another MLM opportunity and signed up with U1st Financial to give you advice on such an important topic?
United First Financial is a Multi Level Marketing business opportunity. The company gets $1,000.00 of the $3,500.00 sale. The remaining $2,500.00 is divided into commissions, overrides and bonus pools for those at the "branch manager" level and higher. You split the commission for your first few sales with your sponsor. Please keep in mind that the effort is yours, you're scheduling appointments and sponsoring new people, and your sponsor is benefiting until you are qualified for full commissions and "training bonuses" The compensation package seems top heavy. Also your appointments are face to face if you enjoy this type of business.
My advice would be to consider just adding more money to each monthly payment if you want to pay off your mortgage faster. If you take a 30 year fixed rate mortgage at 6% on $200,000 your monthly payment is $1199.11. If you were able to pay an extra $233.76 each month, you would pay the mortgage in 20 years.
About the Author:
George L. Kenney is an internet marketing professional. Through the Marketing Mentors Program he will help you in leveraging your time, money and effort to get you on the fast track. Visit http://www.prosperityprescription.biz
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