money merging accounts shorten your mortgage 11 posts by 10 users

Posted: 03/15/2008 at 05:27PM

It sounds like a mortgage accelerator program, where you basically have a home equity line of credit that you deposit your entire paycheck into every month. Any money that isn't used for expenses goes towards the mortgage payment itself.

I've heard of these expensive software programs that do some kind of calculations for you. Not sure of the benefit of the software vs. the cost of the accelerated program.

Has anyone done the accelerated program?

Posted: 04/21/2008 at 08:01PM

I'm certified to sell the Home Ownership Accelerator loan in CA. This loan isn't right for everyone, but if you have a positive monthly cash flow and are a disciplined borrower you can pay off your loan lightning quick. The rates are pretty low too. It's based off of the 1 month Libor currently 2.7 and you can buy down your index down to as low .75% It's not cheap to buy down the index that low, but the break even is usually 2-3 years.

For the right borrower, this loan works. I haven't seen the computer program, but I've heard of it. If works off the same principals as the HOA, I'm sure it can work too.

Posted: 10/05/2008 at 09:29AM

Will this work for some? Maybe, but it depends on your discipline to not go deeper into debt. If you have that discipline, you don't need this program and would be better off sending the $3500 to a creditor and paying down or paying off some debt.

There is a very big risk with this type of program in general in the current credit markets.

Lenders are reviewing credit lines and in some cases just reducing the amount of credit available. But, others are stopping all new extensions of credit. The other part is this type of program requires you to use a LOC instead of a traditional mortgage. As interest rates rise, and they will in 2009, the rates on the LOC will go up.

Underwriting criteria has tightened too so many who have jumped onto programs like this will find themselves unable to go back to a traditional mortgage if things turn south on programs like this. Going back to a traditional mortgage has always been the fallback position presented by these programs.

My advice? If you have $3500 to throw away, pay down some current debt. Focus on paying off any consumer debt then focus on any mortgages.

Being out of debt is your best defense against whatever the economy throws at you. It puts you in full control of how much income you MUST have each month.

Posted: 10/05/2008 at 09:20PM

Google "Steve Herman debt" and check out his website. He has an e-book you can purchase for something like $59 that explains how to do the same thing. He doesn't give you a computer program for $3,500. He just has a worksheet you could put into Excel in about 5 minutes.

An investor friend of mine bought it, and I thumbed through it at a local REIA meeting. It was simple and straightforward, and personally I'd rather spend $59 on something instead of $3,500. And no, I'm not affiliated with Steve Herman in any way!

BTW - the way Aly described it above is correct. You deposit your pay check into your LOC, and then pay all of your expenses, including your mortgage, out of the LOC. You start by sending in a large payment from the LOC at the beginning of each year, every six months, or whatever cycle you want to be on. Of course there's more to it than that, but overall it works because of the way lenders charge interest. Your excess amounts (that you would normally just stick in a bank account making less than 1% interest) go to pay down the excess payment you made at the beginning of the cycle.

Right now my expenses are a bit all over the place because of some things I have going on, but once I get those worked out I am going to probably implement this.

Posted: 10/09/2008 at 04:43PM

The Money Merge Account doesn't even need the line of credit anymore. It is a great system and not only am I using it myself but I am paying off several properties at the same time. People are against this program don't truly understand how it works.
Please review the new video presentation at *** , it works like the Home Ownership Accelerator that is mentioned above but it is utimately more expensive and can only be used on one property. If you have more then one property, the MMA works amazingly. My last client, a real estate investor, had 19 properties with the average pay off being 27 years. He is now on schedule to get them paid off in 16.5 years. YOu could do it without the software program but....why? $3500 investment is nothing when you are dealing with the savings and the helpfulness of the program.
Good luck

Edited: 10/09/2008 at 05:38PM by Moderator: affiliate link removed, use signature