BestFlexibleMortgages.com

What is a mortgage checking account and how does it work?

Used to reduce the total time of repayment and interest on a home mortgage.

Cactus Baseball

July 17th, 2010 at 10:38 am

CMG Mortgage had a product called the Home ownership accelerator and the loans were bought and serviced by GMAC Mortgage.. Great product for the right consumer who has a good positive cash flow most months and good credit discipline.. Think of it as an "all in one" account. It’s a first mortgage revolving line of credit. You’re pay checks can be deposited into the account every pay day. Bonuses, and additional income deposited as well. You then pay your bills out of the same account as they’re due with either a check or online bill pay. If you need cash, you get a debit card too. All of your financial activity goes in and out of your revolving first mortgage… Interest is calculated daily, added up at the end of the month and added to your account as a debit (Added to principal). In essence, you never have to make a mortgage payment as long as you don’t go over your credit limit. Of course, the more you put into the account, the less interest you pay thus reducing the principal balance faster… Like I said earlier though, this type of loan isn’t for everyone because you need to understand how it works and have great discipline. If used correctly, you can really pay your mortgage off in half the time or much sooner. Best mortgage product for the right consumer that I’ve ever seen.