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The problem to be solved was "it was in the interest of the lender to keep mortgage holders owing as much as possible for as long as possible". The broker solv
by jeroen 18y ago
The problem to be solved was "it was in the interest of the lender to keep mortgage holders owing as much as possible for as long as possible".
The broker solved that by having his customers pay him a one time fee, which aligns their interests: now they both want the loan to be paid off as soon as possible. It saves the customer money and the broker time.
And then Cringely changes the one time fee to a monthly payment, which seems to me like going back to square one. Home-Account is motivated to improve your situation just enough to keep you a happy customer, but also to keep you as a customer for as long as possible.
- rms 18y agoDid you read the whole post?
- jeroen 18y agoI did. Any chance you'll honour me with a helpful reply?
- pchristensen 18y agoIt provides credit score and debt repayment counseling. It is like a "saved search" on the mortgage industry, automatically finding better mortgages that you qualify for. It takes the confusion out of refinancing, points, fees, etc. It requires no attention from the user.
- rms 18y agoThe product home-account says they are providing is not a "let's improve their situation enough to make them a happy customer" but something that claims to be a mathematically optimal way of refinancing your home mortage. Then they will tell you when it becomes optimal to refinance your home again. Already they hint that they will begin competing with mint.com so eventually they'll provide lots of useful services. The monthly payment is not a bad thing. It makes it much, much cheaper for the customers. It does not change it so the service will suddenly mislead their customers about the best thing to do for their finances.