I going to tell you about a little known method that you can use to accelerate your mortgage payoff time down to almost a third of the original term of the mortgage. This same method can also be implemented to pay down your debts much faster. This all started a little while back in Australia where people were using this system to payoff their home mortgages in record time and at the same time save thousands in interest. The same concept has caught on around the world and is now starting to gain popularity in the USA.
What this system does is use the banks own math against them be helping you reduce the daily balance of your loan which in effect lowers your interest due. It’s known as a money merge account or a mortgage checking account. The concept behind it involves taking out a HELOC or home equity line of credit and linking it to your checking account. It can also be done using a savings account for those who can’t qualify for the right HELOC it needs to use with the system. The rest of the system involves using special software that tells you how much money to move back and forth between your HELOC and checking account. This system is not for people who can’t control themselves with an open line of credit. You still need to stick to a strict budget which the software will help you do by putting in your monthly expenses and income.
It basically sets you up so that when you make your regular monthly payments more of it goes towards paying down the principal which in effect makes less interest due. This is the acceleration effect and uses your income to offset the loan balance. There is no refinancing involved and no extra payments or bi-weekly payments like other mortgage acceleration systems.
One of the biggest companies offering this program is a company called United First Financial or UFF which is a network marketing company that distributes the software and sets up the accounts for a high price of $3500. The good news is that there are much cheaper alternatives that sell the same exact product for much less. United First Financial only charges that much because there sales reps make over $1000 a sale in commission. It’s not necessary and only making someone richer and you further into debt.
For a complete overview of the money merge account I suggest you check out the presentation at Mortgage Magic. The Mortgage Magic System is an affordable solution to those looking to accelerate there mortgage payoff time using a mortgage checking account. The Mortgage Magic system and software has been years in the works and uses advanced algorithms that has been verified by banks and accountants for complete accuracy. It is also one of the first out of all the competition to be used by banks and lenders across the country. Before you start building wealth, you need to eliminate your debt. Use the Mortgage Magic system and payoff off your mortgage in as little as ten years without any changes in your spending habits.
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Posted under Real Estate
This post was written by Daniel on August 8, 2008
