Bi-Weekly Mtg

[mickeyma]

Anyone have experience with a bi-weekly mortgage program as a lead generation for followup life insurance sales?

Particularly with a company called the Bi-Weekly Mortgage Association (BWMA).

Flyer: What Would You Do If You Didn't Have a Mortgage?

Bi-weekly mtg plan helps pay off mortgage if 1/2 time and then fund retirement with savings (cash value life insurance).

 

[Mr. Bill]

The proponents of biweekly mortgage systems/scams are primarily the banks themselves. The shrink their risk at a faster rate, and should anything happen to the mortgagor, then they will be able to foreclose on a higher amount of equity than under the original schedule.

First, read "Missed Fortune" by Doug Andrews - make that "Missed Fortune 101" which is an easier read. Doug isn't really the best technically at this stuff, but the principles are sound.

Second, go back to Econ 101 and understand the time value of money. We live in an inflationary economy. Why on earth would someone choose to pay off their mortgage with current dollars, rather than pay it off at the end of the term with inflation-ravaged dollars? Dollars today are worth far more than dollars tomorrow.

Biweekly is just another scam like UFirst Financial. Different system, same result.

BTW, they all SOUND really good. If you can only get the client to face reality and build up their savings themselves rather than stuff it into their rafters. Good luck!

 

[moonlightandmargaritas]

Anyone have experience with a bi-weekly mortgage program as a lead generation for followup life insurance sales?

Bi-weekly mtg plan helps pay off mortgage if 1/2 time and then fund retirement with savings (cash value life insurance).

Bi-weekly mortgage plan, and "funding your retirement" with cash value life insurance?

Sounds like two scams for the price of one...

 

[The Rabbi]

I knew a well to do businessman who invested in apt buildings. His home, however, was paid for. Why? In case his financial empire collapsed, he would still have a home. Sometimes having a paid for home is the best security. And I agree that I would rather pay for something with tomorrow's dollars as long as the interest isn't too high.

 

[mickeyma]

First off, people are too undisciplined to add extra money to their principal payment. Bi-weekly mtg might be good for them.

Several major life insurance companies will not accept premium under the Doug Andrews "Missed Fortune" concept.
Too many complaints have been filed against the agent and insurance company after the plan was started and clients experienced a financial squeeze.

How about using bi-weekly as a door opener for life insurance? If they do the bi-weekly plan, they are your clients and selling a term policy to pay off the mtg is easy. And, if they don't do the bi-weekly, use the Columbo technique: Oh, by the way, .....