Money Merge Account?

[Richard Warren]

Has anyone come across the Money Merge Account (MMA), which is being marketed by United First Financial?
The idea is to use a HELOC to prepay your first mortgage by timing additional payments. It is supposed to be better than just paying additional principal by using the program to time additional payments. The company claims that the program is used extensively in Australia with great results. The concept certainly isn't new but the idea is the benefit of computerized timing. To me it just seems like a way to sell an expensive program that the average person will not follow. Am I missing something? I would love to hear from others who may know more about this program.

8)

[Account Closed]

There is no need to pay the fee. An individual can accomplish the same using a HELOC and a 1st mortgage plus depositing all their income into the HELOC account.

I have a One account in the UK.

I have see the presentation for a mortgage product that is in the US but backed by an Australian bank. They charged no fee for setting it up other than the costs of a new 1st like most any other 1st mortgage product.

There are multiple ways to get the job done.

The fee is a sales charge to cover the folks who are promoting the fee based solutions. Like most things in the marketplace there are some programs that have higher front loaded charges and there are programs that do not. The sales people focus on the commission. The savvy investors know how to avoid the inflated charges.

Questions?

The math is very simple. Almost anyone who invests in RE can figure it out with a calculator. The paying off the loan early by X years or the interest savings of Y comes entirely from having less debt outstanding. There is no magic. The feeling of magic is because people do not think about the cost of borrowing vs. the income they get on savings.

John Corey

PS. For anyone who needs a detailed explanation just post the questions. I will either answer in the forum if there is general interest or we can use email. Save your money and buy a better calculator if the math is difficult right now. I can show you how to run the numbers once you can use the calculator.

PPS. The biggest benefit to an investor is not the early pay down of the loan. If is the idea that a HELOC lets you do cash deals.