Frequently Asked Questions
WHO HANDLES MY MORTGAGE PAYMENT?
MSP is the #1 biweekly mortgage program in the country! It’s administrator, AAA Financial Corp., has been in business since 1980. No other biweekly company comes close!
MSP is the smarter way to make your mortgage payment! By simply changing how you make your payment, from once a month to simply paying 1/2 every 2 weeks, you can save a fortune! Making 26 one half payments instead of 12 monthly payments will save you over $60,000, slash 7-10 years off your term, and build your equity 200% faster! Plus, you don’t have to refinance! MSP “wraps around” your existing loan without the hassle and huge expense of refinancing!
It’s no wonder Robert G. Allen (Author of Nothing Down & Creating Wealth, the best selling real estate books in history!) says “AAA Financial Corp. has created the most exciting program I’ve ever seen helping homeowners save literally a fortune on their mortgages! The biweekly program is a real must for every homeowner who wants to get ahead financially.
WHAT HAPPENS IF MY MORTGAGE CHANGES?
If your interest rate or escrow changes, or if your loan is sold to a different mortgage company, you simply call the mortgage servicing department at 1-800-881-2530 and they will make the necessary changes for you. It’s that simple!
WHAT IF I HAVE A PRE-PAYMENT PENALTY?
The majority of loans originated since 1983 do not have pre-payment penalties. However, if your mortgage happens to have one, your enrollment fee will be fully refunded by the Mortgage Consultant who enrolled you.
HOW DOES MSP AFFECT MY TAX DEDUCTION?
Very little in the first fifteen years. The tax deduction will be affected when the mortgage is paid off. You will not have a deduction then. However, our real enemy is not the taxes as we are often led to believe. It is indebtedness! By having your house paid off 10-12 years sooner, you will now have more money to put away for the future. That makes good financial sense! Why pay $10,000 in mortgage payments to write off 28% or $2,800? Why not pay the mortgage off sooner, have the $10,000 as income pay $2,800 in taxes, then pocket $7,200 instead of the mortgage company!
WHY DOESN’T MY LENDER OFFER THIS?
There are only a few of the country’s thousands of banks and S&L’s making Bi-Weekly Plans available according to an article in The New York Times. The reason so few? “The biggest problem with bi-weeklies is the fact that they are servicing nightmares for the banks.” The banks are not equipped to handle the processing. Most banks sell their loan portfolio on the secondary market. So the interest savings in a product like MSP is not a major concern with banks.
CAN’T I JUST PAY EXTRA PRINCIPAL EVERY MONTH ON MY OWN? WHY DO I NEED MSP?
The opportunity to pay extra principal every month on your own mortgage is a legal right in your mortgage contract. There are nearly 38 million mortgages on residences in the USA. Statistics tell us that the number of homeowners who pay extra principal month after month consistently for more than a year is less than 3%! The rest, 97% never do! Have you? What MSP does for the you, the consumer, is put you on a disciplined automated system that guarantees you to be one of the 3% and save you $50,000-$100,000 or more in interest on your mortgage. When we’re talking about $50-$100,000 or more, it makes sense not to leave that kind of savings to chance!