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To download our MSP change form, please
click here. After
you have completed the form, you may either mail it or fax it to us.
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To obtain the free Adobe Reader, please
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There is a one-time (tax deductible) enrollment
setup fee of $99. This is to get verification from your current
lender and to set up your account through the use of sophisticated
banking technology for biweekly electronic debts, and also provide you
with a detailed annual mortgage audit to check for lender
miscalculations of interest rates and prepayment adjustments.
This fee is non-refundable after 30 days of placing your order.
- HOW MUCH IS
THE BI-WEEKLY DEBIT FEE?
There is a (tax deductible) $3.50
debit fee to cover the recurring costs of the
program for the electronic debit through the automated clearing
house (ACH) and to cover the on-going requested mortgage audits,
which is automatically added to your bi-weekly payment.
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- WHAT IS THE MORTGAGE
SAVINGS PROGRAM?
MSP is a consumer oriented
approach to making mortgage payments. It converts a
monthly mortgage payment to Bi Weekly, which over the
course of a year, you make 26 half payments instead
of the 12 current monthly payments. This is done on
an automated system. Converting to Bi-Weekly payments
will build equity up to 300% faster, shorten a loan
by 9 to 12 years and save tens of thousands of
dollars!
Example:. On a $75,000, 30 year
mortgage at 10.5% you will save over $69,000 in
interest and your mortgage will be paid off in 19.6
years instead of 30!
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- WHO HANDLES MY MORTGAGE PAYMENT?
MSP takes your current monthly payment,
cuts it in half, and collects from you this payment
every other Friday through electronic fund transfer.
AAA Financial Corp., a licensed Mortgage Brokerage
Firm and the originators of the program, has hired
Tower Administrative Services, Inc. to handle all
administration for this program. Tower's principals
have over 25 years experience working with direct
debit administration. They are insured and bonded
with a client base of over 25 Insurance
Companies, Dental Plans and Federal Employees (ex.
Postal employees) that have entrusted their clients
to Tower's care. Tower will handle your mortgage
payments in the same professional manner.
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- WHAT HAPPENS IF MY MORTGAGE CHANGES?
If your interest rate or escrow changes, or if
your loan is sold to a different mortgage company,
you simply call Tower Administrative Services, Inc.
at 1-800-223-3531 and they will make the necessary
changes for you. It's that simple!
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- WHAT IF I HAVE A PRE-PAYMENT PENALTY?
The majority of loans originated since 1983 do not
have pre-payment penalties. However, if your mortgage
happens to have one, your enrollment fee will be
fully refunded by the Financial Consultant who
enrolled you.
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When you enroll into the Mortgage Savings
Program , it is a lifetime enrollment. After
buying a new home, simply call Tower Administrative
Services, Inc., and notify them of the change. Your
new mortgage will be put on the Bi-Weekly system. The
total cost to transfer is just a $20 processing fee.
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- HOW DOES MSP AFFECT MY TAX DEDUCTION?
Very little in the first fifteen years. The tax
deduction will be affected when the mortgage is paid
off. You will not have a deduction then. However, our
real enemy is not the taxes as we are often led to
believe. It is indebtedness! By having your house
paid off 10-12 years sooner, you will now have more
money to put away for the future. That makes good
financial sense! Why pay $10,000 in mortgage payments
to write off 28% or $2,800? Why not pay the mortgage
off sooner, have the $10,000 as income and pay $2,800
in taxes then pocket $7,200 instead of the mortgage
company!
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- WHY DOESN'T MY LENDER OFFER THIS?
There are only about 300 or so of the country's 13,000
banks and 3,500 S&L's making Bi-Weekly Plans
available according to an article in the New York
Times, Oct. 22, 1988 issue. The reason so few? "The
biggest problem with bi-weeklies is the fact that
they are servicing nightmares for the banks."
The banks are not equipped to handle the processing.
Most banks sell their loan portfolio on the secondary
market. So the interest in a product like MSP
is not a major concern with banks.
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- CAN'T I JUST PAY EXTRA PRINCIPAL EVERY
MONTH ON MY OWN? WHY DO I NEED MSP ?
The opportunity to pay extra principal every month
on your own mortgage is a legal right in your
mortgage contract. There are over 52 million
mortgages on residences in the USA. Statistics tell
us that homeowners who pay extra principal month
after month consistently for more than a year is less
than 3%. 97% never do! Have you?
What MSP does for the consumer is it puts
you on a disciplined, automated system so that you
are guaranteed to be one of the 3% and save $50-$100,000
or more in interest on your mortgage. When we're
talking about $50-$100,000 or more, it makes sense
not to leave that kind of savings to chance! A typical 30 year
mortgage would only cost about $4.30 per year to guarantee these
savings. The Mortgage Savings Program is the smart choice.
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- WHAT'S THE DIFFERENCE BETWEEN THE MORTGAGE
SAVINGS PROGRAM & THE
MORTGAGE SAVINGS PLUS?
The Mortgage Savings Plus converts your
mortgage payment to a bi-weekly schedule just like MSP
, but it provides several additional benefits:
- It will shorten your mortgage term to 14
years!
- It will save you 25-50% more in mortgage
interest!
- It provides insurance protection on you and
your spouse!
- It provides a retirement benefit!
Example: a $75,000 mortgage with 29
years left at 10.5%, owned by a couple 35
years old would have their mortgage paid off
in 14 years, save nearly $85,000 net in
mortgage interest, have $75,000 insurance
protection on both spouses and 29 years after
starting the program would have $250,000 in a
retirement account, or $2,000 a month income
for life! The increase to their monthly bi-weekly
payment was approx. $75 every 2 weeks!
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- IS MY LENDER GOING TO CHARGE ME TO
CONVERT MY CURRENT MORTGAGE TO A BI-WEEKLY
MORTGAGE?
NO! Simply pay a
one time set up enrollment fee of $99 to the Mortgage
Saving Program and we'll do the rest. It's that
simple!
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Simply fill out our FREE On-Line
Computer Analysis on your
mortgage, to see how much YOU
can save with the Mortgage Savings Program
today!
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