[1] A commonplace method of mortgage acceleration is a so-called bi-weekly payment plan, in which half of the normal calendar monthly payment is made every two weeks, so that 13/12 of the yearly amount due is paid per annum.
Financial institutions and intermediaries offer products such as mortgage-linked checking accounts, and home equity line of credit loan facilities advertised as being capable of assisting in achieving mortgage acceleration, and available at a range of premiums.
The claim made is that by using a particular type of loan in a particular way (often following a “program”), the borrower can cut many years off the mortgage without making additional repayments – or similarly, that although additional payments are made, the savings increase significantly due to the use of a particular loan and/or strategy.
Promoters can profit from the sale of software, providing “monitoring” or “support”, or from commissions from referrals to lenders.
However, the presentations represent that the savings are primarily due to the type of loan account and the way it is being used.