Can I accomplish the same results by PrePaying on my current mortgage?
Yes, it may but here are the problems with that… 1. Prepaying requires extra discipline that most clients don’t have. Ask your client if they do that on a consistent basis now. 2. What happens if they need that money back? They have to go get a new 2nd, tied to the Prime Index and having only 10 years of drawing ability and a very high life cap. Or they have to refinance their 1st mortgage all over, incurring closings costs and starting the 30 year interest amortization schedule all over again. The Results are too good to be true! The Simulator simply takes the client’s spending habits and has them flow all their deposits over the HOA line of credit every month. We often have to say that “it’s not magic, it’s just math” when presenting these results. What they are seeing are the effects of their money working harder for them 24/7 right now as compared to how its flowing now (deposits sitting in traditional checking account, earning 0% interest, paying mortgage with interest before pr
