U1st Financial Business Review, Scam or Legit?

by George L. Kenney

I was introduced to United First Financial and their mortgage acceleration program at a Business Networking International chapter meeting. There was a man who was an invited guest who was explaining how people could build equity in their home more rapidly simply by using the web-based software. They didn’t even have to change their lifestyle or cut back on spending. Being a licensed mortgage broker, I wanted to hear more.

The agent told me that the software is web-based and costs $3,500.00. As he explained it, people would be able to reduce the remaining time on their mortgage by up to one half ( if someone had 28 years left on a 30 year mortgage, they could possibly pay it off in as little as 14 years) depending on their circumstances.

I saw a DVD during our appointment which explained the software and how a typical homeowner with a 30 year fixed rate mortgage could pay it off in a little over 13 years. All they had to do was use the software and reallocate their discretionary or “extra” funds during each month.

Some time later I received a call from a friend from the BNI group. She wanted to know if it would be a good idea for she and her husband to get a Home Equity Line of Credit, pay off all of their credit card debt, get the software program, and be able to pay off the remaining 11 years of their 15 year mortgage in as little as 7 years? On the surface the answer is YES!

However, here are some additional questions. How does the software foresee the future? What if there are changes in the economy, your job status and as a result your income? What if your lender, as so many lenders have, “locks down” your HELOC and you can’t take any money out? What if you have a medical emergency and all of your “extra” money is in equity in your home as a result of the rapid pay down advised by the software? What then? Refinance? At what cost?

As a licensed mortgage broker, I’m also concerned about the qualifications of those selling the program and giving mortgage-related advice. If your home is your most important asset, do you want someone who was selling health care products last week giving you this type of advice?

As a business opportunity U1st is structured as an MLM. The company receives $1,000.00 for the software and the rest is divided into compensation to agents, bonus pools for “branch managers” and overrides. In the beginning you split your first “training sales” with your sponsor. YOU are scheduling appointments and recruiting your downline, only to see your sponsor benefit financially until you are “qualified” to earn full commissions and training bonuses. The lion’s share seems to go to those at the top. And your appointments are face to face, if that’s something you enjoy, this may be for you.

In conclusion, I believe if you want to pay your mortgage down early, and build equity more rapidly, it might be just as prudent to add a specific amount to your payment each month. For example, if you have a $200,000.00 mortgage at 6% fixed rate interest for 30 years, and you add just $89.50 to each monthly payment, you reduce the time by five years. In the same scenario, if you were to add $233.76 to each payment, you would reduce it to a 20 year mortgage.

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