FREQUENTLY ASKED QUESTIONS – FAQs

Money
Banks do not make as much money as they would on a Traditional Loan. Additionally, they would lose a lot of money because they would not have you on the refinancing hamster wheel every 5 to 7 years. Banks love and depend on having a guaranteed perpetual profit so it comes down to Money!
Time
Banks are not in business to take the time and effort to explain everything to you because it is easier and more profitable to them to sell you solely on the interest rate! Time is Money!

Paidoff™ uses a 30-Year Home Equity Line of Credit, HELOC, with an integrated sweep-checking account that allows homeowners to pay off their home Much Faster and gives them instant access to their home’s equity.

It all begins with how Paidoff™ is structured.

• All the homeowner’s paychecks, deposits, short-term checking and saving funds are applied directly to the Paidoff™ Principal balance. This allows you to pay down your home loan Much Faster. Conversely, Traditional Mortgage requires an Amortization Repayment Schedule that dictates that most of your mortgage payment goes to Interest, NOT Principal.
• Homeowners pay their living expenses throughout the month, so those funds keep the Principal Balance lower until they are needed. Interest is calculated daily at a lower balance, so the interest expense is lower. This allows every penny to work for you 24/7 instead of sitting idly in a separate checking or saving account as with the Traditional Mortgage.
• The extra cash that is not needed to pay bills remain in the account keeps the Principal Loan balance lower which lowers your interest costs. The Paidoff™ super-efficient money structure allows your money to work for you tirelessly 24/7 instead of just sitting idly not earning you anything.

Absolutely Yes! Paidoff™ is structured so it effectively enables homeowners to pay off their home Much Faster regardless of what interest rates are. However, with a Traditional mortgage, homeowners must try to time when to buy or refinance in hope of getting the lowest interest rate possible and it will still take them a much longer time to pay off their mortgage.

Much Faster! The homeowner has total control and power of how fast the home can be paid off due to its unique structure and flexibility unlike a traditional mortgage. With Paidoff™ it is not uncommon for homeowners to pay off their homes within 5 to 7 years or Much Faster.

You Celebrate! Then call us so we can congratulate and reward you. You achieved what Paidoff™ was designed to do. You will have a Paidoff™ Home.

You will still have access to your Line of Credit for a total of 30 Years. Your Deed of Trust will be released to you if you decide to close your Line of Credit or when it expires in 30 years. In case you choose to keep your Line of Credit, the annual fee is $60 after the first year. This fee covers the bank’s transactional services.

Anything! The possibilities are Unlimited and there are No restrictions. The homeowner will still need to be financially disciplined.

1. Make home improvements to increase its value.
2. Use it for debt consolidation to save on interest and to invest the savings.
3. Finance real estate investments for quick or passive income and for asset appreciation.
4. Put it toward education and skills development for long-term income earning potential.
5. Start or expand a business to increase income.
6. Investment portfolio diversification by investing in stocks, bonds, mutual funds, gold, or silver, etc. which may outperform the interest on the equity line of credit.
7. Earmark it for an emergency fund so it provides a buffer and prevents going into debt or using higher interest resources when challenging times happen.

Everyone should strive to get Paidoff™ , but some may not qualify and that is alright. These individuals may need to get another type of mortgage until they can meet the Paidoff™ requirements.

The financially disciplined person who has:
1. 700 credit score or higher.
2. 20% equity or more for refinancing. A minimum of 20% down payment if it is a purchase.
3. 40% debt to income ratio or less.
4. 10% asset reserves of Maximum Line of Credit amount. (money in savings, checking, and retirement accounts).

Definitely! Homeowners who have income that may fluctuate and/or seasonal benefit the most because there is no monthly payment required as long as there are funds available in their Line of Credit. This provides total flexibility and safety for those times when income fluctuates.

Absolutely! Homeowners can use their Line of Credit from their primary home to get started in real estate investing. Their Line of Credit is also a great way to fund Fix and Flip properties or purchase investment properties.

Homeowners can also increase their Rate of Investment by using their rental income to pay down their loan balance and pay off their investment property Much Faster. Additionally, since homeowners will have another Line of Credit on their rental property, they will be able use it for repairs, expenses, or even to purchase more investment properties.

Paidoff™ is a First position Home Equity Line of Credit for 30 Years. The maximum allowable Line of Credit is 80% of your home appraised value up to $2,000,000 based on your financial criteria qualifications. Your Line of Credit (LOC) remains Fixed for 10 Years and then it Decreases by 1/240 over the next 20 Years. You can use this money for anything that you want, and No Payment is required when you have available funds.

No! Paidoff™ is a lot less expensive than any Traditional fixed mortgage. The total cost of interest with Paidoff™ is much less due to the quicker reduction in the loan balance and the Much Faster speed of the pay off. The interest rate is virtually a non-factor. The longer the homeowner stays in debt, the more costly it becomes no matter how low the interest rate is. Additionally, with Paidoff™ , since homeowners do not have to refinance when rates become lower, they will significantly save on closing costs and all the hefty interest. Paidoff™ is much less Expensive!

Click Here for the Consumer Financial Protection Bureau, CFPB, Consumer Handbook on Adjustable-Rate Mortgages.

No . The total cost of interest with Paidoff™ is much less due to the quicker reduction in the Loan Balance and the Much Faster speed of the pay off. The interest rate is virtually a non-factor. The longer you stay in debt, the more costly it becomes no matter how low the interest rate is. Additionally, with Paidoff™, since you don’t have to refinance when rates become lower, you will significantly save on closing costs and all the hefty interest.

Click Here for the Consumer Financial Protection Bureau, CFPB, Consumer Handbook on Adjustable-Rate Mortgages.

No. There is No balloon payment nor is the loan balance ever forward amortized with Paidoff™ .

No. With Paidoff™ , there is No Prepayment Penalty. Paidoff™ only has positive features that benefit homeowners unlike some Traditional mortgages.

The loan balance goes up accordingly to the amount used, however the borrower will be able to pay it down quickly due to the 3 Pillars of The Paidoff™ Much Faster Formula©.

Should your balance ever reach your credit limit, you will not be able to withdraw additional funds until a deposit is made.

First Lien Position versus 2nd Lien Position behind 1st mortgage.

Higher Line of Credit Limit up to $2,000,000 versus maximum up to $500,000.

Have full access to the funds for 30 Years versus only 10 years.

No monthly payment is required when funds are available versus required monthly payments on HELOC of 20 years after the 10-year draw period on the HELOC.

No Account has ever been closed nor modified versus accounts are routinely closed or reduced when real estate values drop during economic uncertainty.

Paidoff™ HELOC versus Traditional Home Equity Loan

First Lien Position versus 2nd Lien Position behind 1st mortgage.

Higher Line of Credit Limit up to $2,000,000 versus 80% - 85% combined loan value of the 1st mortgage and home equity loan of the appraised value.

Have full access to the funds for 30 Years versus getting a fixed lump sum at closing.

No monthly payment is required when funds are available versus to having a fixed monthly payment for the life of the loan.

Variable rate that can go up and down versus a fixed interest rate.

Only pay interest on the amount of funds used versus having to pay interest on the full loan amount.

Many lenders do not give you the option to make bi-weekly mortgage payments. Even if they did allow you to make bi-weekly payments, that only cuts off about 3 years off your loan. However, bi-weekly payments are better than doing nothing. With Paidoff™, you have the option of unlimited payments/deposits, and the possibilities are endless. You can pay your home off in 7 or less years and have a Line of Credit for 30 years.

This loan was structured to Eliminate the Inefficiencies of the Traditional Mortgage such as:

• Paying interest first and very little to your principal which keeps you in perpetual debt and paying way too much interest.
• Requiring monthly mortgage payments.
• Earning interest/profits on the money you pay monthly for your property taxes and homeowner’s property insurance most of the year instead of you having control over it to invest it or whatever you choose to do. This would be similar to you giving the government an interest free loan for a year plus by overpaying your tax bill and waiting for a refund check from the IRS.
• Preventing/denying you the capability to allow your money work for you 24/7.
• Charging you a large late fee of 4 to 5% of your mortgage payment when you do not pay by the 15th of the month and tacking that fee(s) to your total loan amount due.
• Reporting you to the Credit Bureaus when you pay later than 30, 60, 90 days which lowers and ruins your credit scores.
• Starting the foreclosure process only after 3 missed payments regardless of the reason.
• Making you refinance again, and again when you need cash from your home’s equity which adds unnecessary closing costs making your loan larger and allowing them to collect their lion share of interest again since it is a new loan.
• Stacking the entire deck against you with all these negative terms so that it is almost impossible for you to pay off your home and become financially free and enjoy life!

Eligible properties are residential which include single family residences, condos, townhomes, and 1 – 4 units. They can be primary homes, second homes and investment. Qualifications vary by type and whether it is for purchase or for refinance.

Yes, up to the cash-out limitations to fund near-term financial objectives. It will be determined on a case-by-case basis.

You only pay the normal customary closing costs that you would with a Traditional Mortgage. No Application Fee or any other junk fees ever with Paidoff™! We only get paid if you close.

No. We have established relationships with select regional banks who will provide friendly, professional customer service once your loan is closed. Your new account combines your mortgage and personal banking and has all the features that you are accustomed to for your banking needs such as secured on-line banking, automated bill payments, debt card, etc. to include being fully insured under FDIC.

Contact us. We will look at your scenario to advise and assist you on how to meet the requirements for Paidoff™. We will create a customized plan for you to show how you can get there. No matter what the time limit, we will help you every step of the way and help you pay off your home Much Faster with Paidoff™.

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