Qualified Mortgage
Accelerate Equity
HOME OWNERSHIP ACCELERATION LOAN
This concept is surprisingly simple: The Accelerator combines all your checking, home loan and home equity line accounts into one master "loan sweep account" that automatically transfers all deposited cash against the loan balance each day in order to save mortgage interest. That's it! This simple change better leverages your cash flow, potentially saving you thousands in interest over the next decade. And, your funds remain available 24/7, just like with your old checking account today.
Combining your main personal cash management tools into one master account relieves you of the need to track money transfers manually. Once the account is set up, transfers to and from your loan account occur automatically. So do your interest savings from your positive cash flow. And when you need cash for investments or expenses, it is quickly available via check, electronic transfer or ATM withdrawal. Nothing could be simpler.
Discover how the power of your own cash flow could significantly accelerate your home loan's pay down, saving you thousands in interest and getting you free-and-clear of mortgage payments years ahead of schedule, without demanding any change in your current spending habits.
Fast Facts about the Home Ownership Accelerator®
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Description |
Advantage |
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Loan Type |
First-position home equity line of credit |
Full-service checking account embedded inside the loan allows all available cash to flow against the balance until needed for investments or expenses. |
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Deposit and withdrawals |
Unlimited. Deposit or withdraw as much and as often as you need using free online bill-pay, ATM/debit Card, electronic fund transfers, checks |
With the Accelerator, your deposits go against principal first, unlike traditional home loans. All deposits are credited against your loan balance within one business day. |
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Interest Rate |
Adjustable Rate based on 1-month LIBOR index |
According to independent studies, LIBOR is a consumer-friendly index, second only to COFI for long-term stability. |
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Margins |
Available margins are 2.75% to 3.25% above LIBOR. Ask your certified agent about margin pricing. |
A lower margin reduces long-term interest costs and accelerates loan payoff and equity build-up. Your agent will present the costs involved for each margin and run a break-even analysis to see which margin works best |
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Lifetime rate cap |
6% over initial interest rate (index + margin) |
We do not expect rates to rise dramatically in the near future, but to protect people concerned with rising rates, the Accelerator offers long-term protection with our +6% lifetime rate cap (your loan rate never exceeds the cap). |
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Minimum credit line |
$100,000 |
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Maximum credit line |
$2.5 million |
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Maximum loan-to-value |
75% of appraised value |
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Minimum credit score required |
700 |
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States available |
CA, AZ, CO, WA, MN |
Look for new states in 2010! |
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Statements |
Online banking, and monthly paper statements detail available balance, withdrawals and deposits |
You have all the information you need to track balance reduction, interest charges and other expenses, just as with your current checking account. Information may also be downloaded to Quicken and MSMoney. You will also receive a standard tax form 1098 for all the interest paid on the loan each year. |
Run the Simulator with your own Situation and Prove it to Yourself!
