We continue to get calls everyday about companies proposing accelerated mortgage programs. Below are some questions we hear often, along with our usual responses:

1) Why shouldn't I just put the fee towards my mortgage?
This might be a better solution. Otherwise, you immediately owe (whatever the fee is) just by starting the program.

2) Why wouldn't I do a bi-monthly instead?
Clark doesn't even like you to pay fees to the bank to do bi-monthly, but the fees you would pay to set that up with the bank would be less than the fees we have heard it costs to set up these type programs. You could send in extra payments to your mortgage company on your own to help pay down the mortgage and that wouldn't cost you anything.

3) Why can't I go to a website like bankrate.com or wesabe.com and do an amortization schedule myself?
You can then pay the expedited payment schedule with the same results for no fees!

4) How can borrowing at a higher interest rate to pay down a lower interest rate make me come out ahead?
Usually, you are told to get a HELOC, (which is a Home Equity Line of Credit, and is usually a variable rate and at a higher rate than a fixed) and you're supposed to park your money there. How does this lower your payment?

5) If it truly worked, wouldn't it make national news, and then consumers would flock to these programs so these companies wouldn't have to look for business?
The CAC has a saying: "Nothing worth having comes looking for you."

6) These programs seem to be like a budget management account.
You could do this yourself by using tools and resources from bankrate.com, nfcc.org or wesabe.com websites.

7) My friends are selling these products and I want to know if it's legitimate.
Might this be another form of multi-level marketing?

8) Could you tell me exactly what you get for the fees since I still don't understand it?
If you don't understand the concept, we always recommend not doing it.

It is always possible that new products on the market bring new benefits to the consumer. Due to the importance to the consumer of the decisions and the impact on their lives, these questions must be asked.