There is so much information to sift through, let's face it un educated post like the one below can really make you wonder. This one comes from a very good site with great many professionals, so I started reading, very hopeful. The initial questions was made by a good member of the site, so I concluded it was not a ‘plant' (someone who joins to post, then leaves). However, the very first response was pushed as credible, and it wasn't:"It has been discussed.
The best response I read was by member Steve Sushner, who happens to be an attorney. This is what he said:
I reviewed this product for the first time last week. Frankly I am disgusted by it. It does NOT save any money, it merely moves debt from one location to another and in fact will cost most clients more money than it will save them (even if there was no $3500 fee and even if we forget the tax implications). The debt on the ALOC is almost entirely ignored. Additionally the program fails drastically when you realize that most people are paid twice a month, not once and in arrears. Substantial savings is realized on this program by these two false presumptions.
I so dislike this program (and find it grossly unethical- I'm sure the class action lawsuit is around the corner) that I believe anyone who advertises it on brokeroutpost should be banned. Anyone else agree?
The only reason anyone is able to sell it ever is that people get very overwhlemed by its complexity. I challenge anyone selling it to run it by a licensed CPA and see if he would purchase it (even for free).
BTW, has anyone selling this ever noticed that the program CAN'T work on an interest only mortgage EVER."
The first two things that went through my mind was
1) I work with Lawyers all the day long. They study the law-but that does not make them good business people. Lawyers do not take risks-they are the most neutral profession in the world, making money by playing both sides of the field.
2) I met two certified CPAs last night at the meeting I went two-both on the program, and one of them selling the Money Merge now.
I went over my notes from last night and started doing some figures. My own conclusion was that this "lawyer" was not the brightest bulb in the box. If you asked ANY banker how you can pay down your own mortgage faster, they would tell you to apply more money to principle. That's what this does. It directly affects the interest which can be charged and you CAN accelerate the payoff. So, where did "It does NOT save any money, it merely moves debt from one location to another and in fact will cost most clients more money than it will save them (even if there was no $3500 fee and even if we forget the tax implications)." come from?
The debt in the HELOC was not ignored by the program, it was focused on first! My mind raced, and I simply could not see how a company, seeking to get people out of debt, with a proven track record, would be "unethical".
The last point that stuck out, was the example they gave in the general meeting I went to: a mortgage broker started laughing, and asked if he was correct in noticing that this would pay off an interest only mortgage like the program had steroids on it?
Then they showed us how it would work. Case in point: that lawyer is an idiot, using his profession to sway the readers. Lawyer words used to sway people who simply don't use their own minds.
I moved on down the board...
The first advocate was strong, and again-not a plan (he had over 125 posts in other boards). He/she said:"The Money Merge Account is a good tool. We have a few of the best CPA's in CT on board with the company who are offering this program to their clients. People always talk about the tax advantages you lose when you pay your home off. You simply buy another house and create more wealth while keeping the tax advantages. If you can own 3 homes free and clean within 30 years, is there something wrong with that? It works with bi-weekly pay and with Interest Only mortgages. Don't listen to every Attorney. UFF has their own legal advocates."
So we had for and against, and if you go through and read the whole board, you can even watch a few people become converted. However, as you go through the posts (I won't quote them all), some very good questions came up:
1.) The rate on a HELOC is generally higher than the rate on your home-why would you take money from a higher rate to pay down a lower rate?
This is a very good question and one that is asked very often. The money merge account software program calculates all of the variables to effectively help you pay your mortgage faster. More over the heloc will cost you less money in interest because it is an open ended loan. This is one of the most important principles to understand and in my opinion one which people do not quite understand, not until they sit down with a qualified professional so that they can see how it work with their own eyes.
- Suppose that you have a line of credit of $20,000 @10% and you borrow $5,000 we know that the bank will now charge you interest on the $5,000 you borrowed right? So we now take $5,000 x 10%=$500.00 and divide it by 12 months which equals to $41.67 in interest charges.
- You just borrowed $5,000 for $42.67 in interest charges But wait! Suppose you pay back $4,000 by the end of the billing cycle. The bank can only charge you on the average daily balance, therefore you will be able to impact how much interest is paid to borrow that money.
- In other words you have just floated $4,000 and not paid a penny in interest for using it. FRIENDS this is just like American Express use it now pay it off by the end of the billing cycle and pay no interest.
- But what about the $1,000 balance I owe. This is the exciting question. How much interest are you currently earning with your checking and savings account? Let's change the way we do our banking behaviors so that we can let our money work for us 24/7. You will simply deposit your income into the line of credit which will keep your HELOC balance low and the software will tell you when to send different amounts of money to your primary mortgage.
- This is not magic this is called leveraging your money and the money merge account from United First Financial does exactly what it guarantees.
Take a step into our world let us show you a FREE no obligation presentation. Sleep on it take notes ask questions, but the only way to make an educated guess is to be educated on the latest and newest technology available to us TODAY.
When the Remote for your TV was invented you started to use one, although there are a few stragglers still getting up to change the channel. Don't get left behind we can educate you and answer any questions. Then United Financial will guarantee this program for life.
We at mortgagefreefinancial.net are interested in helping you make the right choice.
Thank You, and God Bless You
Juan Tanon
407 319-3369
info@mortgagefreefinancial.net
Are you in need of additional income? We can train you on our easy ABCD steps we have been using to generate sales... Give us a Call 407 319-3369
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