We’ve gotten this question a lot over the years and there are some out there that will say it doesn’t work? We’d argue that we have thousands of successful clients to back it up and our owners worked in the big rooms at banks. They understand why the banks want us in long term high interest mortgages because they are the bank’s most profitable product. Banks make the most money from interest and mortgages give them the largest and longest amount of interest to be paid. When securitizing and pooling mortgages began in the late 1970s it added even more meat on the bone for mortgages. Read on and hear it directly from our CEO.
Yeah, we have scammed over 8,000 people by doing this strategy. Surprisingly, we’ve got an A+ Better Business Bureau rating and four-and-a-half to five-star Google and Amazon reviews. I’m being obviously sarcastic. Yeah, we didn’t fool that many people with a scam.
It’s not a scam, and I’ll prove it to you. Here’s a quick history lesson—a financial history lesson. All we’re doing is going back to basics. It may be new to you, but it is not new to this world. What is newer to this world is the modern-day mortgage. The modern-day mortgage has been around for less than 100 years. Prior to 1930, and specifically 1913 with the Federal Reserve, mortgages looked a lot like a home equity line of credit. So, all we’re really doing is going back to basics. We’re not reinventing the wheel.
Now, we’ve got a new flavor and a new spin to it. We’ve got a new banking industry and some new tools, new technology that helps us execute more efficiently. That part is new, but the concept is very old-fashioned. So, it is far from a scam.
Find your closest millionaire worth $10 million or more and ask them what they do with their money. It’s not paying cash for a home. It’s also not getting a mortgage. They’re probably utilizing simple interest lines of credit, whether it’s from their business or from a home equity line of credit, to more efficiently pay off their home. And if they’re not, ask them what they do in their business. Ask them why what they do in their business isn’t the same as what they do in personal finance.
I can guarantee you that anybody worth $10 million or more who has debt on their company isn’t doing it with some type of installment loan. They’re doing it with some type of business line of credit or commercial line of credit because they know they want to pay it off, rinse, and repeat. They use it as a backstop, as capital, and then deploy that capital into the company to grow the company and increase its cash flow.
If you’re doing it for your business, ask yourself a simple question: why aren’t you doing it for personal finance? And then they’ll be like, “You know what? That’s a good idea. I think I’m going to do it in personal finance as well.” So no, it’s far from a scam.
Among other things, our detractors say things like, you can pay extra to your mortgage, you don’t need a Heloc. Duh, we never said you couldn’t pay more on your mortgage. We are just saying there’s a better way, a much better way to accelerate paying off your home. We know most people aren’t willing to put extra to a mortgage because it’s an inefficient vehicle that locks your money up for a long time. You know who understands it even more, the banks. They want our money tied up in their products for as long as they can tie it up, hence the mortgage. The right Helocs solve this glaring problem and often come cheaper and at lower rates.
I know I’m kind of being a smart aleck, but you’d think after 10-plus years of doing this, thousands of clients, hundreds of testimonials, and a 98% success rate, we wouldn’t have to deal with this question. But I get it. We’ve only scratched the surface. There are over 80 million homeowners out there, and 98% of them are consuming their archaic “death pledge” (which is a mortgage) versus what could get them out of jail, debt-free—a home equity line of credit.
That’s why we’re here, and that’s why we’re in business.
