EBS-Equity Building System: FAQ
How Does The EBS Work?
The Equity Building System (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 life of the loan. We accomplish this
by systematically collecting loan payments every other week. Since there are
52 weeks in a calendar year; this totals 26 half payments. The 26 half
payments are 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 life of the loan.
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How Much Will My Total Interest Savings Be With The EBS?
The amount of interest savings varies, depending on the term of the loan. Click here to get a customized savings analysis now.
The following is a typical example of the interest savings:
| Regular Loan Terms |
EBS Payment Program |
| Loan Amount: $150,000 |
Loan Amount: $150,000 |
| Interest Rate: 9% |
Interest Rate: 9% |
| Loan Payoff: 30 years |
Loan Payoff: 21.9 years |
| Monthly Payment: $1,206.94 |
Bi-weekly Payment: $603.47 |
| Interest Saved: $0 |
Interest Saved: $88,377 |
| Payments Saved: 0 |
Payments Saved: 97 |
All calculations are for illustration purposes only. Equity Building System does not guarantee these exact savings and is not liable for Lender inaccuracies. These calculations do not include standard processing fees.
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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 us informed of changes
in your escrow payments. It's common for your taxes and insurance premiums
to increase from time to time. If we are not informed of changes, the
required monthly payment may become deficient and create an avoidable
problem.
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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. The Client enrollment form
authorizes EBS to debit your specified account. We monitor each client's
account to ensure the fund transfer was successful. These funds are
deposited in a FDIC insured bank.
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When Will My Loan Payments Be Made?
Your loan payments will be made by the due date each month. 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! You must ensure there are
sufficient funds in your account on the scheduled debit dates of our plan.
If the transfer of funds did not occur because of insufficient funds, there
will be a charge of $29 incurred on this same account. It is recommended you
have overdraft protection on your debited account to ensure this charge is
avoided.
If you have requested applying extra amounts to your normal monthly payment, these funds are applied to principal at the end of the month in which they are collected.
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What If I Change Bank Accounts?
If you want to change the account from which EBS 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 you to us. We would always like to avoid insufficient funds charges in all cases. Also, failure to notify us could cause loan payments to be misdirected or late.
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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 us 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 us IMMEDIATELY. The EBS program is transferable to new loans at no additional cost. This benefit does not apply to clients who cancel the program.
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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 and boats are some of the common types. If you are not sure about your particular situation, contact our Customer Service Center.
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Who Do I Contact With Questions or Changes?
EBS Customer Service Center is open Monday-Friday from 9:00am-5:00pm EST.
As a general rule, if there are any changes in your loan
terms, bank account or Lender, you need to contact us immediately. We are
only as good as the information that we have on file. You can contact us in
the following ways:
Customer Service:
Phone: 517-655-2140
Fax: 517-655-4877
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Mailing Address:
Equity Building System
119 E Grand River Ave.
Williamston, MI. 48895
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