Seems a bit too good to be true, what would be some of the risks not mentioned in the presentation ?
My thoughts are if interest rates were to spiral out of control like in the 80s to double digits . . .
Any thoughts ??
ADDED -
Ok in a nut shell what they do is take out a HELOC and start making big payments into the FIXED mortgage, they then start paying down the HELOC and then repeat the process, it is supposed to eliminate years of the 30 year mortgage and they have a software so you can track when it will be paid off (they aim for 12-15 years) using the leveraged HELOC account.
To enter a coupon code in your post please enter the following info:
Coupon Code:
Coupon Offer:
Merchant:
Expires (optional):
Restrictions (optional):
saving...
Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
Before we all go willy-nilly checking out links to who knows what, how about a summary? If their solution is to start a porn website then it would be good to know before popping it up.
This looked suspiciously spammy... but then I checked your registered date: Monday, August 27th 2001 3:19 PM
So, probably not spam. Still giving you red though until you give us a lot more details so we don't have to go watch a 50 minute presentation just to answer your q.
Ok in a nut shell what they do is take out a HELOC and start making big payments into the FIXED mortgage, they then start paying down the HELOC and then repeat the process, it is supposed to eliminate years of the 30 year mortgage and they have a software so you can track when it will be paid off (they aim for 12-15 years) using the leveraged HELOC account.
Does the software cost you $3500 ? Or maybe this place will charge you only $50? Or maybe $10,000 .. what's the cost? I'm not going to bother going there.
Achilles22 said:Yes to me paying for the software is a scam, my question is how valid is the idea of paying of your mortgage using a HELOC as a tool ???
Rewind:
doerrb said:Please search before you post.
MMA
Money Merge Account
There are several threads from just the last week on this topic.
montee4 said:talljay said:Apparently the "Search" box needs to be MUCH larger.If they could just get it to flash and call out "Try Me!"I think they need some flashy images to catch the eye. Or maybe some fleshy images... "Try Me!" Yes, that would go over very well...
Achilles22 said:Yes to me paying for the software is a scam, my question is how valid is the idea of paying of your mortgage using a HELOC as a tool ???
There is a little validity to the idea, however, in many cases the higher ADJUSTABLE HELOC can kill the potential savings. The idea about the HELOC compounding interest daily vs. the mortgage sticking to a fixed amortization regardless of when the payment is made does make sense, but once you throw rates into the equation it changes. If by some miracle you could get a fixed HELOC equal to your mortgage rate then, yes, you'd have a winner.
There are many threads here though on why paying down a low, fixed-rate mortgage can be a bad idea (check out the Dave Ramsey review thread for a detailed explanation). Although, if you are disciplined enough and paying off your mortgage fast is your goal, you could do what this program does and have less money come out of your pocket if you took out a reasonable chunk of money (that you are able to pay back in 12 mos) on a 0% BT for 12 months, chucked that money at the mortgage, and then socked 1/12 of the BT amount in a high yield savings, then at the end of the 0%, pay off the credit card with your savings, rinse, and repeat.
I also plugged the $3,500 this scam company charges for the software into a bankrate calculator and using myself as an example, throwing $3,500 directly at my mortgage rather then buying crappy software knocks 15 months off the end of my mortgage, saving about $16k. However, these simplified equations don't factor what ELSE I could do with the $3,500 that could yield an even higher ROI than making a payment on my 6% mortgage.
Achilles22 said:Ok in a nut shell what they do is take out a HELOC and start making big payments into the FIXED mortgage, they then start paying down the HELOC and then repeat the process, it is supposed to eliminate years of the 30 year mortgage and they have a software so you can track when it will be paid off (they aim for 12-15 years) using the leveraged HELOC account.
Thx Red removed as promised.
But I agree with everyone else here - "if it sounds too good to be true..."
I did a google seach for 'Money Merge Account'
First hit: 90% of the posts have been deleted: The author of this message has lost his/her posting privileges. (lol)
Second hit: (site from squidoo) Lots of promises about how easy it is, how it helps you pay off a 30 year mortgage in 11.2 years with the same monthly cost and how the information to do it is free. ... but they don't actually tell you how it works ... and you have to meet with them in-person for the explanation of how this scheme works. (I'm guessing they are good salespeople)
Third hit: Link They aren't selling anything here - but the details are so sketchy. Then at the end they say you can do it yourself, just put every extra cent you don't spend into your mortgage... so is that all the MMA is? A way to encourage you to put extra money into your mortgage?
The last post on this site: Could someone please show the full HELOC spreadsheet of the example the MMA program uses in the video.
But I can't seem to find any hard numbers. If you are simply putting extra money toward the principal, then of course you are going to pay off your mortgage quicker. Some people just make an extra mortgage payment once per year...
I just love how in the "comparisons" they imply you pay off the 30 yr mortgage 10-15 years sooner without changing any of your current cashflow. What they don't go out of their way to tell you is that you have to throw alot more of YOUR money at the mortgage every month than the 30 yr plan to get these results (basically whatever is left of your income after expenses goes towards the mortgage). That's just like PREPAYING your existing mortgage, so do that instead! Any interest leverage of parking your monthly income against the mortgage before paying out your bills has a negligible effect. Put it in an interest bearing checking account if you really want a few extra bucks a month.
berlinsmommy said:Although, if you are disciplined enough and paying off your mortgage fast is your goal, you could do what this program does and have less money come out of your pocket if you took out a reasonable chunk of money (that you are able to pay back in 12 mos) on a 0% BT for 12 months, chucked that money at the mortgage, and then socked 1/12 of the BT amount in a high yield savings, then at the end of the 0%, pay off the credit card with your savings, rinse, and repeat.
Lost on this. Seems like shells rattling... what am I missing?</blockquote></blockquote>
bterwilliger said:Lost on this. Seems like shells rattling... what am I missing? If you can afford an extra $500 a month for the mortgage instead of sending that in each month transfer $6,000 at 0% to the mortgage and send the $500 (minus the minimum payment) into HYS; at the end of the year pay the 0% card off. I think.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Red removed as promised.
