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  1. #1

    Speed Equity System

    Has anyone heard of or been involved with the Speed Equity System promoted by "Mortgage Reduction Expert" Harj Gill? It seems relatively inexpensive compared to the MMA which has been discussed at length here.
    He offers subscriptions at what appears to be a reasonable price to homeowners, but then also subscriptions to mortgage professionals and others who promote the product. How do these people make money? I guess I'm a little suspicious because I know someone has to be making money somewhere. That's not a problem, but I find that you can't find out anything specific about the product unless you sign up. The website is www.speedequity.com. Thanks for any info youhave.

    Karen

  2. #2
    Join Date
    Aug 2007
    Posts
    104

    Re: Speed Equity System

    We've mentioned them in the United First Financial and MMA threads in this forum.

    They don't make you extra money. You'd be better off just applying extra money to your mortgage. All they do is roughly the same thing, except they complicate it by adding another loan into the mix (called a HELOC or ALOC). In the end, the process works like so:

    Fixed mortgage accelerated payoff method
    * You have, say, $500 extra per month.
    * You have only 1 loan (your mortgage).
    * You apply that $500 to your mortgage every month.
    * Your mortgage will be paid off of in, say, 15 years instead of 30.

    HELOC shuffle method (as used by UFF and Speedequity)
    * You have, say, $500 extra per month.
    * You now have 2 loans, (your mortgage and your line of credit).
    * You apply that $500 to your line of credit every month (you actually apply your entire paycheck to the line of credit...but when you take out all your expenses for the month, you'll have $500 left...so it's as if you only applied that much to your line of credit).
    * When your line of credit's balance is close to $0, the software will tell you to pay down the mortgage again.
    * Your mortgage will be paid off of in, say, 15 years instead of 30.

    It turns out that the HELOC shuffle is actually MORE expensive and it's a few months SLOWER to pay off a mortgage. Here's why:

    1) All that money you were spending on UFF or Speedequity could be applied to your mortgage instead.
    2) Without their product, you only have 1 loan on your home, at a lower rate (say, 6%). With their product, you just move your money into two loans...but you still owe the same amount. Except now the HELOC rate is higher, such as 9%, and your fixed rate stays at 6%. That 9% means more interest you have to pay.

    Now, to be the devils advocate, these companies argue that on your own, you would never apply your discretionary income towards your home, and would instead spend it too quickly on frivolous items. So they say their program helps force you to pay down a mortgage faster than if you tried to manage your own money yourself.
    Last edited by helix; 08-18-2007 at 01:19 AM.

  3. #3
    Join Date
    Jul 2007
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    558

    Re: Speed Equity System

    Quote Originally Posted by helix
    Now, to be the devils advocate, these companies argue that on your own, you would never apply your discretionary income towards your home, and would instead spend it too quickly on frivolous items. So they say their program helps force you to pay down a mortgage faster than if you tried to manage your own money yourself.
    They lie out of both sides of their mouth.

    The above is indeed a frequent claim of the people peddling these schemes (people spend their excess money). But is that is the case (people spend their discretionary money on fun and games and whatever) then how can they ALSO claim that you can pay down your mortgage with little or no change in your lifestyle?

    If people are already spending their $500/mo in discretionary income it most certainly IS going to impact their lifestyle if they find out they really have to cut $500/mo out of their spending for the next 15 years.

  4. #4
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    Aug 2007
    Posts
    4

    Re: Speed Equity System

    Yes - I am doing the speed equity program now. It's wicked exciting and the Creator Harj Gill does live Webinar's 2 times a week (2 hours each night) to make sure his Garden continues to grow. He was on our Channel 3 KVBC news program here in Las Vegas in July and gave a free seminar to about 1000 people to explain the program. Meetings are being set up so we can get together and help each other (support) to work our program. Hope you enoy becoming a Mortgage freedom fighter.

  5. #5
    Join Date
    Aug 2007
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    28

    Re: Speed Equity System

    Yes, I have read his book. Full of quotes to make the reader feel like it has content. Classic psychological manipulation. If I remember correctly he is connected to Ramtha and JZ Knight.

    Just my humble opinion though.


    “We believe the official count represents manipulation and fraud.” - Charles Hunter
    Last edited by communicateclearly; 08-28-2007 at 09:55 AM. Reason: spelling

  6. #6
    Join Date
    Aug 2007
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    4

    Re: Speed Equity System

    Check out his Webinar - It took me awhile to wrap myself around the concept (I had to do alot of research as I was suspicious about the whole thing)but the free online guide and webinars keep me excited. The book was OK but it's the continued support that I find interesting.

  7. #7
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    Jul 2007
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    Re: Speed Equity System

    Quote Originally Posted by bjsands
    Check out his Webinar - It took me awhile to wrap myself around the concept (I had to do alot of research as I was suspicious about the whole thing)but the free online guide and webinars keep me excited. The book was OK but it's the continued support that I find interesting.
    The entire concept is a farce. I don't have any idea what kind of "research" you did but you sure didn't actually run any numbers or you would have quickly figured out what a joke all these mortgage acceleration schemes are.

  8. #8
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    Aug 2007
    Posts
    4

    Re: Speed Equity System

    I have done the numbers and I am on the "free program" and it is working. I guess I probably won't see you mortgage free any time soon. The interesting thing is it is all about budgeting. The program basically allows you to follow a budget (numbers that you've inputed) while your money is applying itself to your daily interest thereby bringing down the daily interest therby saving you tons of $. If it doesn't cost anything why are you so against it. I assume you haven't run your own numbers. Good luck to you.

  9. #9
    Join Date
    Aug 2007
    Posts
    28

    Re: Speed Equity System

    Quote Originally Posted by bjsands
    If it doesn't cost anything why are you so against it. I assume you haven't run your own numbers. Good luck to you.

    So your telling us that you didn't refinanace your prevous mortgage, Your current mortgages is a fixed rate 15 or 30 year mortgage at less than 6%

    Is this correct? If it is not, then you left a superior mortgage for an inferior one (thus costing you money = NOT free)


    bjsands, if you want to prove that Harj has a superior product, then post your numbers monthly for a year. Take the challenge if you aren't willing to do this, then you reveal yourself as morally dubious. Anybody can say anything, numbers do not lie.


    “We believe the official count represents manipulation and fraud.” - Charles Hunter

  10. #10
    Join Date
    Jul 2007
    Posts
    558

    Re: Speed Equity System

    Quote Originally Posted by bjsands
    I have done the numbers and I am on the "free program" and it is working. I guess I probably won't see you mortgage free any time soon. The interesting thing is it is all about budgeting. The program basically allows you to follow a budget (numbers that you've inputed) while your money is applying itself to your daily interest thereby bringing down the daily interest therby saving you tons of $. If it doesn't cost anything why are you so against it. I assume you haven't run your own numbers. Good luck to you.
    It does cost you something, the additional interest you will incur due to unnecessary borrowing from your HELOC.

    Yes, I've run the numbers, I can talk to the number, I understand the numbers, I can derive any required equations and I have a spreadsheet I made available online to clear up the confusion created by mortgage acceleration folks.

    Dump the HELOC, get a savings account, keep your idle money in there and add any additional amounts you want to pay to your regular monthly mortgage payment.

    If you want to track your income/expenses get an inexpensive copy of Quicken or Microsoft Money.

    The very best case for a HELOC scheme is prepaying your 1st mortgage on day 1 knowing that you can repay the loan on day 2 (where day 2 is too late to add the additional amount to your mortgage). You incur 1 day HELOC interest and save 1 month 1st mortgage interest. Sounds great. But let's do the numbers.

    Assume you manage to have $5000 idle and use the above approach with a 6% mortgage. You will save approximately $300/yr in interest and incur 12 days of HELOC interest (at 8% that would be $13.33), if you could do this every month. I'm ignoring the compounding of interest on the 1st mortgage, it is down in the noise.

    But wait, if you don't prepay your mortgage on day 1 and pay the loan back on day 2 you can keep the $5000 in a 5% savings account. That drops your net savings to 1% on $5000 for a year, about $50 minus the $13.33 HELOC interest.

    Now that is the BEST case, a net savings of $36.67 per year.

    If you, on average, don't pay the loan off until day 5 your savings entirely disappears. Most of the mortgage acceleration schemes have you paying off the HELOC advance over a period of multiple months, that never makes economic sense.

    A HELOC made great sense 4 years ago when HELOC rates were less than fixed rate mortgage interest rates and savings account were only paying 1.5%. Now they are an expensive source of money and a HELOC money shuffling scheme is a complicated way to accomplish a simple task.

  11. #11

    Re: Speed Equity System

    With due respect, you do not seem to understand how interest works. There is a difference between interest that is amoritized over a 30 year period and HELOC interest which is only charged on the amount used. $5,000, if kept in a HELOC for a year would be charged $33.33 in interest per month. That same $5,000 paid toward the mortgage would save the homeowner $23,000+ (example based upon a $200,000 balance). Because you are paying down the $5,000 over a period of a few months, the interest used is minimal compared to the interest saved on the mortgage. You are basically borrowing money which COSTS you less to pay off a debt that COSTS you more. I am personally on the UFF program is it is working and worth every penny. You can do this on your own if you have the discipline to follow through. There is no such thing as a savings account that pays 5%. I have a savings account with BOA and it pays .40%. Keeping money sitting in any account is no way to build wealth.

  12. #12
    Join Date
    Aug 2007
    Posts
    28

    Re: Speed Equity System

    Quote Originally Posted by kayjay1110
    With due respect, you do not seem to understand how interest works.

    With due respect, Kayjay1110 YOU do not understand how interest works. Read this article and them come back with some knowledge.

    http://www.chicagofed.org/consumer_i...g_interest.cfm

    After you have informed yourself, we can have a conversation.

  13. #13
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    Aug 2007
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    104

    Re: Speed Equity System

    Quote Originally Posted by kayjay1110
    Because you are paying down the $5,000 over a period of a few months, the interest used is minimal compared to the interest saved on the mortgage.
    The claim: You take $5000 from your HELOC, put it on a mortgage, and you say you "save" $23,000 in interest from the mortgage.

    The reality: You still OWE the exact same amount. You have only split one loan into two loans (one of which has a higher interest rate).

    The ONLY way you are saving money because you are applying lots of discretionary income on your home. You said "You pay down the $5000 over a period of a few months". Well, if you have all that extra money, put it towards your mortgage! There is no reason to take money from your HELOC for your mortgage, while afterwards paying your HELOC down quickly. Just pay down your mortgage quickly! It's faster, cheaper, easier, and less risky.
    Last edited by helix; 08-30-2007 at 11:18 AM.

  14. #14
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    Sep 2007
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    1

    Re: Speed Equity System

    I need to find a mortgage loan for my new vacation home. Any suggestions on a 30 year fixed rate?

  15. #15
    Join Date
    Oct 2007
    Location
    Las Vegas
    Posts
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    Re: Speed Equity System

    I've been using Harj's system since early 2007 and I can tell you that not only is the concept behind the system sound, but as other threads have mentioned, I've found his software to be the most complete debt reduction system I've ever used.

    I've dedicated myself and my free time to providing free, no sales and no strings attached presentations on how the system has worked for me including showing my financial statements and the mechanics of how exactly I move my money around.

    check out http://investing.meetup.com/401

    No one in the financial community should fear this system. This concept creates wealth for the individual because it reduces debt and gets the individual excited about reducing their debt. Ultimately, it allows the consumer to save, invest and spend more.

    Harj's system goes a step further than all other copycats out there by offering this relief at an extremely reasonable cost. I purchased his first book on Ebay Australia published in 1996. It's specific to the Australian banking system, but I wanted to trace back the origins of the system.

    Through my research I did find that this system does have risks.
    You can't do this system if:
    You won't look honestly at your income versus expenses
    You won't take the time to enter your information into the software
    You can't control your spending
    You're spending more money than you're making.

    You must have even a minimal amount of money left over at the end of the month.

    If your curious about the system don't give up on investigating it. It's math, so it's provable and remember even in the 21st Century when everybody thinks they know everything, there are still some interesting surprises out there that have only recently been accepted:
    - Cars can run on waste vegetable oil
    - Ulcers are caused by bacteria that everyone has in their stomach and are completely cureable
    - If you reduce the average daily balance of your debt, you will pay less interest and pay down your debt faster.

    Harj's website by the way is www.speedequity.com

    You can also find video interviews and news reports on youtube by typing Harj Gill into their search tool.

    Also, check out this link for an article on the system using a 1st lein HELOC (not Harj's system, exposes the consumer to more risk than is necessary, but a good introduction to the concept)
    http://articles.moneycentral.msn.com...YourHouse.aspx

    I hope to see you at one of my Meetups.

  16. #16
    Join Date
    Aug 2007
    Posts
    104

    Re: Speed Equity System

    Speed Equity is yet another overpriced money shuffling smoke and mirrors scheme. And once more, salesmen (who no doubt did not get a degree in anything financial related), are selling a multi-level-marketing like product, which was developed also by someone who does not have a degree in anything financial related.

    They spout lies like "No change to your spending habits", when that is of course false, because all your free money must go towards the mortgage to pay it down sooner.

    If you used their system for $20 years, you'd have to pay $1150. That money would be better off put towards a mortgage balance.

    Ultimately, avoiding the money shufflers, and instead putting your extra money towards a mortgage, will be faster and better.

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