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Accelerating Your Equity
How do you like this deal?

Every time you pay a bill out of your checking account, you pay a $4.15 convenience charge. To enjoy this extra convenience, you pay a modest $49 enrollment fee. Is that a deal or what?

The company promoting this offer says that they save their customers an average of $33,000 each. But those same customers could save several thousand dollars more by not using this company's services.

The service provided by Equity Accelerator is a biweekly mortgage payment program. What they do to earn their service charges is to have money transmitted from your bank account to their bank account, hold onto it for a while, and then transmit the amount due on your mortgage when it becomes due. And because they are a completely independent entity from the mortgage company, if you take them up on their offer, you could be responsible for late charges caused by Equity Associates late payments, even if there is no problem drafting the payments from your bank account.

Under the bi-weekly program, the first payment you make will have to be held at least two weeks so they can combine it with the next payment two weeks later. Assuming we're dealing with a 30-day month, they will be able to hold onto the next payment for two additional days. After a year, they're holding onto the money for nearly 45 days. For the privilege of letting them hold onto your money like this, you pay a $49 enrollment fee plus another $108 per year at the rate of $4.15 for each biweekly payment.

Of course, they admit that you can try to build equity on your own, but most people find it difficult to send in more than the monthly payment on a consistent basis.

Although "building equity" by paying down your mortgage principal makes sense if you have the spare cash around, a mortgage ordinarily has the lowest interest rate of any debt you incur. If you have any higher interest debt, paying additional money towards your principal will actually increase your total interest costs, and that increase will generally occur in the form of non-tax-deductible interst. In other words, if you have any non-mortgage consumer debt and take them up on their SPCIAL OFFER, you'll lose three ways:

On the other hand, if you're not carrying any consumer debt, you're comfortable with the amount of funds you have set aside for emergencies, and you'd like to pay down your mortgage, your lender will generally be required to accept your extra payments without any extra charges. Go for it!

Here are the scammers involved in this fraudulent offer:

Equity Accelerator
a service of Paymap Inc.
which has been acquired by and is a subsidiary of First Data Corporation

P. O. Box 191090
San Francisco, CA 94119-1090
phone: 800-803-6646
phone: 800-209-9700

Some of the mortgage companies conspiring with Equity Associates to take more of their customers' money is:

Other firms trying to take money from your wallet:

Read more about bi-weekly mortgage options:

More comments:

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