GiovanniGigiloMan said:My HELOC will be dropping to prime next month and my 1st is a no doc high ltv loan.

I have already started the MMA plan and my 2nd was an equity line so I had no need to redo either mortgage.I increased my Heloc to accomodate this program. It makes no sense to refi to a lower rate because I have a prepayment penalty and I am self employed and would have to get a no doc loan that are not available with my LTV. What you are saying to do is to take all of my discretionary income and send it to my closed end mortgage where I can never access it unless I refinance to pull it out.
Then I would have to start the mortgage clock all over and pay closing costs. What part of using the banks own resources,and their money to leverage a principal reduction a few times a year don't you understand? The MMA way I will always have access to my equity. What happens if an emergency comes along, or I am out of work and I need a chunk of money from my equity? MMA way I can write a check from my equity line or pay my bills until I get back on my feet. Your way I will have give all of that extra money to the bank every month, have no access to it, and when I ask them to give me a HELOC they will turn me down because of my situation (hypothetically). The MMA software is a financial planner that looks 3 months ahead, tracks my budget and at any time I can see exactly how many years and what month I will be debt free. As life happens I can tell it what I am doing or want to do an it will instantly make the adjustments and show me how it will effect my months or years to pay off. To me that is worth every penny.You had a mortgage and a HELOC. Now you have a mortgage and a HELOC. Are you honestly saying that you need a software program to tell you to write a check on your pre-existing HELOC when you 'need a chunk of money from your equity'?

Glitch99 said:GiovanniGigiloMan said:I should not have to waste my time on your ignorance. Read my last post and Google compound interest and then Simple interest. Closed end loan and open end loan. A portion of the discretionary income, in my case 1800.00 is used to pay simple interest to use the banks money to pay down principle and cancel out compounded interest. Here is an example that was shown to me to help me understand haow it works:

Month 1:
Day 1 -$3,500 Money Merge Account one-time fee

Day 2 -$4,000 Living expenses
-$7,500 Average daily balance

Interest Cancellation
-$7,500 Average daily balance owed
Day 3
$5,000 Paycheck (deposit)
-$2,500 New average daily balance

The bank can only charge interest on $2,500:
$20.83


You need to understand the concept of 'average daily balance'. What you are giving is the running balance. After day#3, your average daily balance is $4500, and that is what they charge interest on. You are claiming they only charge interest on the actual balance on the statement date (although calling it the 'average daily balance'). Doesnt work that way.


GiovanniGigiloMan said:I am paying off in 7.1 not 7.8 years....I have 7000 in and 5200 out each month. Paying 0ff $289,500 total debt.If you are contributing $7000 each month and paying out $5200 each month, your net contribution is $1,800 every month. Forget about interest cost for a minute - even if you are paying absolutely zero interest, $1800 for 7.1 years (7 years, 2 months?) is only $154,800 to put towards your principle. It would take you over 13 years just to pay enough to cover your $289500 balance. No matter how 'complex' the software's calculations are, there is no bank in the world who would willing accept $154,800 as payment in full for a $289500 debt, and interest-free at that.

$7500-$5000=$2500 not $4500

The reason it does not compute for you is becuse the Algorythems built into the software calculate on a daily basis how much to borrow from the Heloc to facilitate a principal reduction at certain times during the year. This is the part that you don't understand. I have been trying to explain this. The $1800 is being used to pay the small simple interest fees to borrow large lump sums to drive down the principal. The software is programmed to get you to zero the fastest possible way. It just doesn't apply $1800 each month, that is where you are missing the point. A portion of that $1800 is used to pay the interest on the open end loan to pay down large sums of principle on the closed end loan. Simple vs compound.

GiovanniGigiloMan said:Glitch99 said:GiovanniGigiloMan said:Month 1:
Day 1 -$3,500 Money Merge Account one-time fee

Day 2 -$4,000 Living expenses
-$7,500 Average daily balance

Interest Cancellation
-$7,500 Average daily balance owed
Day 3
$5,000 Paycheck (deposit)
-$2,500 New average daily balance

The bank can only charge interest on $2,500:
$20.83


You need to understand the concept of 'average daily balance'. What you are giving is the running balance. After day#3, your average daily balance is $4500, and that is what they charge interest on. You are claiming they only charge interest on the actual balance on the statement date (although calling it the 'average daily balance'). Doesnt work that way.

$7500-$5000=$2500 not $4500
$2500 is the outstanding balance. NOT THE AVERAGE DAILY BALANCE, which is what the interest is calculated on. You need to forget about algorythems for a moment and learn what 'average' means.

This example is assuming that this is happening in this time frame. The $2500 is there for the remainder of the month. It is a simplistic example on how it works, not actual.

So answer my question, why would I want to send All OF MY EXTRA MONEY to my closed end 1st and never be able to access it vs manage it through a HELOC and always have it available??

Please stop insulting GiovanniGigiloMan. He's trying to respond to questions, and throwing insults at the one person who has been willing to post the numbers given by the software won't make him more willing to work through this with us.

Now, why are we arguing about the HELOC's impact, and the $10-$20 max it can save a month? That's a gnat. The elephant in the room we should work on is comparing the software's best scenario with putting the $3,500 cost of the software towards the principal. Naturally, this would need someone to check the numbers from the software, and make certain that its number match reality. I'm just getting off of work, and I don't want to be that person

nmathew said:Please stop insulting GiovanniGigiloMan. He's trying to respond to questions, and throwing insults at the one person who has been willing to post the numbers given by the software won't make him more willing to work through this with us.

Now, why are we arguing about the HELOC's impact, and the $10-$20 max it can save a month? That's a gnat. The elephant in the room we should work on is comparing the software's best scenario with putting the $3,500 cost of the software towards the principal. Naturally, this would need someone to check the numbers from the software, and make certain that its number match reality. I'm just getting off of work, and I don't want to be that person The 'numbers' are telling him he only has to put in $155,000 over the next 7 years to pay off his $289,000 debt (or assumes HUGE leaps in salary over the next 7 years); in year one alone he will 'put in $7000 and pay out $5200' each month (net paid in of $21600 for the year) yet somehow manage to pay $30,944 off the balance. That claim alone is way too rediculous for this data to be taken seriously, no matter how interest is calculated or when/how you account for the $3500 cost.

But I appologize for previously engaging in debate, contrary to the OPs wishes.

GiovanniGigiloMan said:My HELOC will be dropping to prime next month and my 1st is a no doc high ltv loan.

I have already started the MMA plan and my 2nd was an equity line so I had no need to redo either mortgage.I increased my Heloc to accomodate this program. It makes no sense to refi to a lower rate because I have a prepayment penalty and I am self employed and would have to get a no doc loan that are not available with my LTV. What you are saying to do is to take all of my discretionary income and send it to my closed end mortgage where I can never access it unless I refinance to pull it out.

No fee HELOC to pull money out, simple. Exactly what you are doing with the MMA HELOC. An extra 22K to play with if you'd left the loan on the new BMW as car loan (6% 5 year loan?) instead of raising the rate to the HELOC level at 9%.

Getting yourself into stuck into a no doc, intrest-only, prepayment penalty loan? Priceless.

 

Then I would have to start the mortgage clock all over and pay closing costs.

Mortgage clock meaningless when you can pay $1800 extra a month and cut 30 years to less than 8. Closing cost trivial to what you can save, could have put the $3500 of the software towards closing.

GiovanniGigiloMan said:I am done on here all you do is twist what I say and then make me defend myself. You are so adament about proving yourselves egos right that you completely miss. I have not had to do anything different than I was doing before except how I manage my checking account. The MMA does way more than a spreadsheet. I have a money back guarantee, I don't have to spend my extra money and lock it up in a closed end loan. My car is paid off I am happy.
So good luck,
I have better things to do than f*@* around here. This is a complete wast of energy.

Yet another completely new poster does nothing but promote MMA and fails to grasp the simple math that would save them thousands.

Mortgage Accelerator / Offset Account / Pay off Your Mortgage Sooner Myths and Facts FAQ

GiovanniGigiloMan said:I am done on here all you do is twist what I say and then make me defend myself.you say twist, we say correct. semantics...not really. You are so adament about proving yourselves egos right that you completely miss.no, we are adament that uneducated people don't fall for your crap. I have not had to do anything different than I was doing before except how I manage my checking account.what checking account? you went from a checking account to a negative balance account paying interest. yeah, brilliant.The MMA does way more than a spreadsheet.you are right there, it drains $3500 from you day 1.I have a money back guarantee, I don't have to spend my extra money and lock it up in a closed end loan.you have a money back guarantee that is worthless, because it does exactly what they say it does. If you follow their instructions, it has you prepay your mortgage, and you will pay it off faster than not prepaying at all. Of course, you could do that on your own faster by writing one simple check per month and use a checking account that pays real interest instead of 0%.My car is paid off I am happy.oh, so now it's paid off, eh? I thought it wouldn't be paid off for a few years? Hmmm, the story changed. Yeah, big surprise. Shill.

I have my car paid off, and the house. Here's $3500 worth of software in 1 compound sentence, pay your bills on the day they are due, hold the $$$ in a high yeild savings account in the meantime each month, and use every extra penny you have each month to go towards your mortgage payment. And since there's no $3500, and regardless, since interest rates are as they are today, you will do it faster than with FREE ACCESS TO UFF SOFTWARE.

Google search results for United First Financial ROCK!!!! Almost EVERY 1st page result links to threads debunking the scam. I love it.

GiovanniGigiloMan said:ASSHOLE
Wow this thread degraded even quicker that the other UFF/MMA thread.