World's Most Honest Mortgage Accelerator Review
Classical Example with higher rate on HELOC
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We are testing Mortgage Accelerator software from a company called StreamlineYourDebt. This software also has the ability to import your bank statement and recalculate paying off date accordingly. This feature is very nice; it allows users to see how large purchases or deposits will impact his pay off date. This feature is not shown in our screen shots. But you will fall in love with this feature once you begin to follow this software.


We use a classical example with mortgage of 640k at 6.25% for 30 years, started back in 06/01/2008, and a HELOC rate stands higher at 7.5%. Here we are borrowing money from higher interest account to pay down the lower interest rate mortgage. Is this a good idea? The key here is that two accounts accrue interest differently. This is the case you can not see it through clearly at first glance. We will go over the numbers in the example. The numbers will open up your eyes.



Step 1, Input Primary Mortgage
You can bring up wizard by clicking on "Edit", then "Wizard".
input mortgage

The loan balance is the original one with the starting date. In this example, we use interest rate at 6.25% for 30 years.


Step 2, Input HELOC

input heloc

In this example, we use HELOC interest at 7.5% with max at 120k. Currently, The person has no balance in HELOC at this time. Also, his HELOC started in 07/01/2008.


Step 3, Input Monthly Expense and start Calculation

input mortgage


This person also has $1500 positive cash flow every month, he can applies to either primary mortgage or HELOC. Monthly deposit is the total take home pay. Monthly bill doesn't include HELCO payment, but include primary mortgage payment and property tax.


Step 4, How is HELOC look?

Notice the software is directing user to withdraw $5000 or $6000 from HELOC and applies these funds into primary mortgage in some months. The balance in HELOC is partially offset by monthly month inflow. The time difference between deposit and going out to pay the bills each month also play in the borrower’s favor.
heloc

When money is withdrawn from HELOC, interest is required to pay back into HELOC. This interest is less than a hundred dollars per month. Can the money saved from primary mortgage cover this HELOC interest? This is where software comes in play. We need software to find out if this borrower is making a good deal here.


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