1. WHO IS INFORMATION BROKERAGE SYSTEMS AND WHAT KIND OF PEOPLE WILL BE MANAGING MY MORTGAGE?
Information Brokerage Systems has been in business providing biweekly mortgage service since 1989. In 1995, we developed the Mortgage ManagerTM software program making it possible to provide the biweekly service at no cost to the homeowner. Our Lenexa business license number is 10011767. Our Dun & Bradstreet number is 79-922-3433. We're also members of several business organizations in Kansas including the Shawnee Chamber of Commerce.
The Mortgage Management Division of I.B.S. is headed by Executive Vice President Michael Edgecomb who has received national honors for his work with homeowners just like yourself. These honors include being featured in "Who's Who Among Outstanding Americans," "International Leaders in Achievement" and the 1996 edition of "500 Leaders of Influence" which is on permanent display at the U.S. library of Congress in Washington, D.C.
The International Biographical Institute has awarded him "Man of the Year" for 1995-96 for his development and production of this software - the Mortgage ManagerTM . This software program has helped thousands of homeowners just like you save $50,000 to $150,000 and more, eliminate years of mortgage payments, and avoid costly lender miscalculations.
You'll have certified trained mortgage reduction experts managing your mortgage and they are just a phone call away to answer any of you questions. Top of Page
2. HOW LONG AM I COMMITTED TO YOUR SERVICE? WHAT IF I DECIDE TO TRY IT, BUT LATER CHANGE MY MIND?
Using the Mortgage ManagerTM, even on a trial basis, commits you in no way. Our service is free so trying it costs you nothing. If you're unhappy, you can cancel at any time without any obligation whatsoever. However, our past experience tells us you'll enjoy the service and the savings so much you'll be telling your friends and relatives about it. Top of Page
3. HOW IS MY MORTGAGE PAYMENT PROTECTED WITH YOUR SERVICE?
We all work hard for our money and we want assurance that it's fully protected. We hear in the news everyday stories of "fly-by-night" companies, embezzlement of huge amounts of money, etc. With our biweekly mortgage service, your funds are fully protected, insured, and are at absolutely no risk whatsoever.
All biweekly mortgage service is done electronically and governed by Regulation "E" of the Federal Reserve System. Regulation "E" is a consumer protection law which regulates the transfer of your funds. In its simplest form, Regulation "E" states: "An account holder has 120 days to contact their bank to reverse any unauthorized electronic debit to their account." This can be verified at your local bank or Federal Reserve location.
Your biweekly mortgage payments are protected by various safe guards to eliminate such illegal activities such as embezzlement. Any fund transfer over $1,000 has to be approved by an officer of the company and NO fund transfer can exceed the maximum amount of any single mortgage we service. Every employee of the company is covered under a self-insured "employee dishonesty bond" thus protecting every one of our mortgage payments up to $10,000.00.
Our free software also allows you to track and audit your mortgage payoff and savings every step of the way by using a special code number we send to you after a minimum of six months on the service. Top of Page
4. I THINK I'VE HEARD OF THIS SERVICE BEFORE, BUT IT WAS NEVER FREE. HOW CAN YOU PROVIDE SO MUCH AT NO COST?
The Mortgage ManagerTM competes with over 600 banks and other private companies who offer biweekly mortgage service. They ALL charge a fee ranging from $395.00 to over $1,000.00. We could easily do the same, but homeowners who are just getting by (and who need this service the most) have a hard time paying a few hundred dollars when it's going to save them thousands of dollars.
When we developed the Mortgage ManagerTM, we searched for a way to eliminate this cost and provide the service free to the homeowner. Volume is how we are able to still generate revenues without charging the homeowner. The Mortgage ManagerTM is the most popular and efficient mortgage reduction system in use today. We're paid interest in exchange for managing millions of dollars in biweekly mortgage service. Every company has to generate revenue in order to service their customers and stay in business, however, our earnings don't come out of your pocket like they do with our competitors. We are the only company in America who offers the biweekly mortgage service free.
You'll notice a small banking service fee to process your electronic transfers. This is something we do not have any control over and do not profit from it. This fee can be compared to FREE cellular phone calls on evenings and weekends. You still pay 3 to 5 cents per minute which pay for taxes and other things the phone companies have no control over. This fee exists with all biweekly mortgage service, even our competitors who charge homeowners over $1,000.00 up-front for the service. Actually, you're already paying this small service fee (plus a whole lot more) right now in lost savings each and every month to your lender. Top of Page
5. CAN I DO THE SAME THING MYSELF WITHOUT YOUR SERVICES?
Almost. You can pay off your mortgage early and save money by increasing your monthly payment and making additional principle payments, but human nature is against us. Statistics show 97% of people who try to do this fail to do it consistently and never save any substantial money - those aren't good odds to gamble with on what will most likely be the biggest investment of your life. Plus, when you start making these increased monthly payments that's where a lot of the mistakes indicated by the F.D.I.C. occur. The 3% of America who have the self discipline, and resources, to make increased monthly payments have a 50/50 chance of losing a lot of their savings due to errors in loan amortization, interest compounding, index and margin calculations, etc.
Our free service includes AUDITING your mortgage to track your savings and catch possible lender mistakes. To have an outside company audit your mortgage can cost $100 to $150 per year and is critical since F.D.I.C. estimates errors occur in nearly every other mortgage with the average mistake costing the homeowner over $1,500.00. Below is an article that emphasizes the seriousness of this fact:
ATTORNEY GENERAL OF NEW YORK - After ordering the nations largest mortgage lender to refund $150 Million dollars in overcharges; "We dug deeper and deeper and found that this system of overcharging is virtually universal. It runs across the entire mortgage lending industry."
THE HERALD - "Lender holds principle payment; About four months ago, my wife and I decided to start making extra payments on our mortgage. We were shocked when we realized the lender held these checks more than 60 days before applying them to our loan." Top of Page
6. I CONTACTED MY MORTGAGE
LENDER AND THEY SAID THEY WOULD NOT ACCEPT ELECTRONIC BIWEEKLY PAYMENTS,
SO HOW CAN YOU DO IT?
Your mortgage doesn't actually
change to a biweekly mortgage because that would require refinancing (which
involves new appraisals, surveys, inspections, titles verification, financial
statements, etc.) and a cost of several thousand dollars. Rather
than the homeowner budgeting a full payment once per month, they'll budget
a half payment every two weeks. We restructure your mortgage onto
a biweekly "schedule" through electronic transfers to give you the same
savings and benefits of paying your mortgage biweekly without the cost
of refinancing or changing your existing mortgage agreement with your lender.
This reduces your loan amount much quicker than a "monthly schedule" and
builds your home equity 300% faster.
Funds are forwarded in the form of a check which is verified each month. This creates no problems with your lender and also provides a paper trail which can be used in case of a lender miscalculation. Top of Page
7. I'M ON A TIGHT BUDGET, ALWAYS PAYING MY BILLS AT THE LAST POSSIBLE MINUTE, CAN I STILL ENJOY THESE SAVINGS?
Absolutely. In fact, you'll find "biweekly" payments much easier to budget than "monthly" payments. It might take a little getting used to at first, but the benefits and savings you'll enjoy make it well worth it.
The National Council of Savings Institutions says "biweekly payments are 'pro-consumer' because they equal the paycheck flow." Since biweekly payments correspond to America's paydays, it makes mortgage payments much easier for homeowners who are on a tight budget or have a difficult time saving money.
If your budget is so tight that you commonly mail checks before you have the available funds in your account, knowing the check will not be presented for a few days, you can still take advantage of the biweekly mortgage savings. Asking your bank for "overdraft protection" will allow your biweekly transfer to occur even if you deposit the funds a few days later. Top of Page
8. WHAT EFFECT WILL YOUR SERVICE HAVE ON MY ABILITY TO DEDUCT INTEREST PAYMENTS ON MY TAXES?
Many people are led to believe it's bad to pay off their home early because they will lose the tax write-off. This couldn't be further from the truth. In reality, it gives you added income. For example, if you're in a 25% tax bracket and you write-off $10,000.00 in home interest payments, you save $2,500 off your taxes. That's a $10,000 expenditure to save $2,500. On the other hand , if you owned your home and didn't pay $10,000 in interest payments, you would have to pay $2,500 in taxes on this money, but you end up with $7,500 in spendable income.
It's a fact that most Americans sell their homes after about 7 years. It's also a fact that you can make monthly mortgage payments for 7 years and still not have enough equity in your home to pay a realtor to sell it.
By tripling the accumulation of home equity, you'll have additional money at your disposal to pay for Education, Vacations, a new Car or Boat, Retirement, etc. You'll be able to deduct these interest payments where you normally wouldn't be able to if you took out a separate loan for such items.
You also have the ability
to dramatically upgrade the quality of your home you live in by building
equity 300% faster and transferring this extra equity into a more expensive
home if you desire.
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