FREQUENTLY ASKED QUESTIONS
How Does The Equity Building System™ Work?
The Equity Building System ™ (hereinafter ‘EBS’) is based on the simple concept of
making one extra payment, per year, to principal. This, in turn, will reduce the total
amount of interest paid over the course of the loan. We accomplish this by systematically
collecting ½ of a loan payment every other week.
Since there are 52 weeks in a calendar
year, this is the equivalent of 13 full payments, with the “extra payment” being applied
directly to principal. This simple concept significantly reduces the total amount of
interest paid over the course of the loan.
How Much Will My Total Interest Savings Be With The EBS?
The amount of interest savings varies, depending on the terms of the loan. As a rule, the
larger the loan and the higher the interest rate, the more you will save. In a typical
mortgage loan, you will save 10’s of thousands in interest, and 3-7 years of payments!
You can get a customized savings analysis sheet right from this site or from your
GemCap representative.
What Happens With “Escrow” Payments?
It is common practice to send money above the normal loan payment to your lender for
the purpose of paying taxes and insurance premiums. These funds are deposited into an
escrow account, from which the taxes and insurance are paid when due. With the EBS
program, this extra amount will also be applied to principal once per year. This extra
amount enhances the interest savings, equity buildup, and reduction of the loan term. It is
very important for you to keep GemCap Equity Management, Inc. informed of changes in
your escrow payments and or your bank account. It is common for your taxes and
insurances premiums to increase from time to time. If we are not informed of changes,
the required monthly payment will become deficient and create avoidable problems.
How Will My Funds Be Collected?
The EBS electronically debits your bank account through the Automated Clearing House
(ACH) system. This ensures the prompt and precise transfer of client funds. This process
is administered through Hank Payments and issued through Cottonwood Payments, a division of, FinWise Bank, Member FDIC.
When Will My Loan Payments Be Made?
Your loan payments will be made by the due date each month (The loan payment is
NOT paid bi-weekly. Most Lenders do not except half payments, especially for
mortgages). One of the great benefits of our program is that you’ll never have to be
concerned with coupons or monthly billings. It’s all automated!
Twice per year, the successfully collected “extra payment” is sent directly to your Lender
and applied to principal. It is made in the same time frame in each subsequent year. If
you have requested extra amounts to your normal monthly payment, these funds are
applied to principal at the end of the month in which they are collected.
What If I Change Bank Accounts?
If you want to change the account from which GemCap Equity Management, Inc. is
debiting, you simply need to notify us of this change. We will request a new voided
check or deposit slip to ensure accurate account numbers. It is imperative that this
information is communicated from the client to us. We would always like to avoid
insufficient funds charged in all cases. Also, failure to notify us could cause loan
payments to be misdirected or late.
What If I Sell Or Refinance My Property?
The great thing about our EBS program is that it is transferable for life. If you are
planning to refinance or sell your property, you must notify GemCap of any change of
loan terms or Lender. This is very IMPORTANT! In addition, loans are sometimes sold
from one Lender to another. If you receive any notice of change of Lender, please notify
GemCap IMMEDIATELY. The EBS program is transferable to new loans at no
additional cost. This benefit does not apply to clients who cancel the program.
What Types OF Loans Can I Use
The EBS Program For?
The EBS program works with almost all types of loans or lines of credit. New home
purchases, second mortgages, investment properties, RV’s, cars, boats, and credit cards
are some of the common types. If you are not sure about your particular situation, contact
our Customer Service Center.
What Happens When I Enroll In The Family Protection Plan (FPP)?
You can enroll in the FPP right on your EBS application. Once we receive the
application, we notify Legal Club of America of your enrollment. You will receive a
welcome packet from them within.
Who Do I Call For Support For the FPP?
Once enrolled, all support questions are handled by the plan administrator, Legal Club of
America®. This information will be in your welcome packet.