Home Ownership Accelerator - FAQ

Frequently Asked Questions about the Home Loan Accelerator Loan Program



Why hasn’t this loan been offered in the past?

Let’s put this in context: Banks pay low rates on savings, checking and other deposits made at their institutions. Then they loan the same money out, charging the borrowers a higher rate for the use of that money. The difference in what they PAY in interest and what they ARE PAID in interest is how they make most of their money.

Statistically, consumers refinance every 5 years which means the regular banks are only collecting about 1/6th of the overall interest due. Borrowers are far more likely to stay in the HOA until it’s paid off, enabling GMAC Bank to collect closer to 100% of the interest.

GMAC Bank is a part of the GMAC family of companies. By going above and beyond ordinary banks, GMAC Bank is in the business of helping our customers’ dreams become reality.

Will my loan be resold?

The servicing of your loan will be through GMAC Bank, one of the largest banks in the world, and it will not be resold.


How do I make mortgage payments?

Every month, your income is sent directly into your Home Ownership Accelerator account. This amount is applied to the principal owed, thereby reducing the interest owed. The Home Ownership Accelerator breaks with mortgage tradition by giving you, the borrower, the power to reduce your debt more aggressively. Traditional mortgages make it easy to get into debt, but offer no tools to help you manage the debt down. The Home Ownership Accelerator helps reduce your mortgage debt more quickly, simply by putting all your personal income to better use.

- Your income lowers your monthly balance.
- The lower balance saves you interest.
- The saved interest becomes extra principal payment.
- This further lowers your balance, saving more interest.
- This frees up even more money to reduce principal.
- This cycle repeats itself each month, compounding your interest savings
- and accelerating the reduction of your debt.

Your income goes directly to principal and monthly interest is automatically deducted, so as long as you have adequate cashflow, you don’t make a traditional “payment”.


Why should I put all of my income into my home loan?

If the cash in your checking or savings account is earning less than your mortgage rate, it can be an excellent idea to put your income into the HOA account. Instead of earning 1 or 2% in interest, you’ll be saving 5 to 7% in interest you would have paid.


Will I close my normal checking/savings account?

In many cases, yes. In order to make the most of the HOA concept, you will want as much cash as possible deposited into your HOA account. The more you lower your daily mortgage balance, the more interest you will save. The checking account and debit card that are part of your HOA account will give you full access to your money, 24/7.


What if I pay off my home early?

If you pay off your home loan early, congratulations! Even at that point you still have access to the equity in your home. And, if you continue to make deposits, they will actually earn a higher rate of return than a normal checking or savings account.


What happens if the value of my home drops?

In this respect, the Home Ownership Accelerator is like a normal mortgage. The problem for most people is that when property values fall, they end up owing more than their home is worth. A Home Ownership Accelerator allows you to pay your principal down faster, and you have a much better chance of NOT being “upside-down” on your mortgage. If everyone had a HOA, we probably would not be in the negative mortgage climate that has swept our country.


Do I have to pay off my home early?

No, the loan term is for 30 years, and remains in effect for all or any part of that term.


How can I find out how fast I can get my home loan to a zero balance?

To learn more visit the “Quote” tab on this web site and fill out the information requested or call 888-743-9952 and one of our Home Ownership Accelerator experts will get in touch. We will make an actual comparison of your current mortgage and Home Owner Accelerator, as well as interest rates and see if it’s right for you. Take a look at the video, and see how the Accelerator works: http://www.homeownershipaccelerator.com/data/Movies/5-Min-Movie/player.html.


What happens if I miss a payment?

The Home Ownership Accelerator is ideal for business owners whose income may fluctuate. There really is no normal mortgage payment to make, as long as the balance of your loan is ___________________________________________________________.


Do I need to change my spending habits?

No, this is the beauty of this loan. Nothing really changes, only the way you THINK about your mortgage, and the amount of mortgage interest you’ll be saving every month.


Is there a maximum credit limit on the account?

Yes. You have access to funds up to your maximum credit line. The amount available at any given time is the difference between your principal balance and the credit line.


Is the interest I pay still tax deductible?

The Home Owner Accelerator is a mortgage, and as such acts a debt to be repaid for your property. The interest is deductible, just the way your current mortgage interest is deductible. Contact your tax professional to understand your individual situation.