Real Estate and Home Mortgages - Pay off your mortgage in 5-7 years!, without.......

....making extra payments! As seen on tv! The seller of this plan claims it is similar to how mortgages are done in Britain and Australia. He says -in our country, we have a mortgage whose principle reduces very little in the first many years. That practically your entire payment is going to interest.

So presumably this system doesn't work this way. So how does it work? Too good to be true? Are the Brits and Aussie's doing this? How could this have been a secret in the U.S. for all these years? Is there some catch he is not telling us about?

This has always been true - as far as I know. .... but never pay for a plan to make extra payments. You can add to your principle payment at most anytime with most mortgages. Your regular payment includes interest and principle, your extra payment is principle only.

Surely there has to be more to this plan that this. No?

The whole come-on with such a plan is they make it seem like magic. Like, send in same money -"no biweekly payments", they claim. So when you here that, the presumption is somehow or another they create money for you out of thin air. Just what people all hope for. :D

Wouldn't any dope know that if you give more money to the bank - that the time you have to pay off the loan will be less? If you had say a 15 year note, and you made 1 extra payment a year, and your mortgage was $1000 a month. How could making only $5,000 additional payments between the 15th and 10th remaining year knock say 5 years of payumets off what you owe?

And why do they make is sound like some secret that only the Brits and Aussie's do in mortgages. There are people here in the U.S. that, if possible, make some extra payment when they can. The ad makes it sound like this is some 'plan' of some sort that involes the banking industry here, compared to over there.

IF the plan indeed is something as simple as you say, and there is nothing more than that, I should go on tv and advertise something stupid - like tell people how they can reuse the same screws in stripped out wood holes, using the same screws - and tell them I have this secret, and then mail them the answer for $25 a person telling them to fil the holes with toothpicks or some other simple solution to some idea.

IMO it is no more than a scheme to seperate a fool [no intention to belittle anyone] and his money.

Your idea to sell hi priced tooth picks might work but if your luck is like mine, about the time you started raking in the cash, someone would figure out how to start a class action suit to get it all back.

I'd really like to learn what that plan is really all about.

Years ago when I was young, they came out with all kinds of schemes you could get in on. One (type) claimed to send you this valuable info on how to make money. You presumed you'd get some book on the subject. But all that it was was info on some piece of paper. And usually all it said was for you to send this paper to others and you'd get a kickback from everyone else downstream. :D

So. You have bad luck? And you are retired? It can be worse if you are out there working everyday. There are so many things to think about so that you do not actually create your own bad luck. It can drive one nuts.

Try this one once: You try clearing a drain with a water blaster device in a kitchen drain (in the under-sink cabinet). You go down to the basement to see how fast the water meter is spinning so that you know how much water is being shoved past the clog. (One revolution is close to 7 1/2 gallons). You see the meter spinning fast so you go back upstairs and shut off the water. Only to have a flood of water then come fluying back at you ort the drain pipe. And learn after the fact that all that water blasting was not going down the drain, but up to the roof, running out the vent and down the shingles. And all the water in the vent was filled up with water and all of it comes back at you. Enough to get some foul language out of you. :eek:

Oh, I know! While I can usually get by doing most home repairs myself, I detest doing plumbing - seems like the busted pipe is always in a hard to get to area [and I don't bend as good as I used to]:p

I had a plumbing drain fiasco similiar to yours - my stepson's trailer kitchen sink got plugged, drain cleaner didn't work so I went over there with a snake - that didn't work either. I'm not sure how I came up with the idea of using air pressure but I capped one drain and used the air nozzle and a rag on the other - the drain plug blew off, spraying goo all over the place :eek:

The fix was sliding on my belly, cutting the belly wrap and cutting out a section of drain pipe, cleaning and reinstalling:wall:

When it comes to plumbing - if we aren't friends or related - call a plumber:D

My sweetie bought his house with a 5/25 ARM that had the first five years at a fixed interest rate. He vowed that he would never allow the interest rate to go up so he paid additional principal on the loan every month. Sometimes he was able to pay an additional several months of principal at one time. He had to work a lot of overtime but the result was that he paid a $200,000+ mortgage in about four years. There were no special plans or bi-weekly payments necessary, just the overtime money and the diligence to forego silly little things like extra cars or long vacations for the plan of retiring early and enjoying life.