interest cancellation
- Thread starter bosox
- Start date
awpitt
Main Streeter
What software?
I have been offered to buy a software program that tells you how to turn your heloc into a "checking account" that will end up helping tell you when to pay out certian bills, main mortgage, cars, credit cards, etc.
This is a MLM company--I do like several MLM companies--they do offer good products...this one seems to require outside of the box thinking--and it seems sound--but there is a little voice inside making me "really" think about this.
This is a MLM company--I do like several MLM companies--they do offer good products...this one seems to require outside of the box thinking--and it seems sound--but there is a little voice inside making me "really" think about this.
awpitt
Main Streeter
Are there any online resources where one might read up on this??
moon5leg
It's not easy being green
Money Merge Account
I believe they type of system you're looking for is the Money Merge Account. United First Financial is currently the leader in MMA's for the industry. The basics of it are that you use the equity in your home to open a HELOC. All of your bills are paid out of the HELOC, and all of your income is deposited into the HELOC. The MMA software performs detailed analysis of your income vs. expenses and advises you to make extra principle pay-down payments on your primary mortgage using the funds that are available in your HELOC. Depending on your specific situation, following the MMA program can help you pay your mortgage off many years early, thus saving thousands (or hundreds of thousands in as in my case) in mortgage interest payments without altering your current lifestyle. With the MMA program you are simply putting your discretionary income to a better use than sitting in a savings or checking account. Here's a link to a blog that has a very good amount of information about MMA and how it works. Check out all of the archived blog postings to really get a good understanding of this program. Hope this helps. I personally think the MMA is a great tool, but like everything else, it may not be for everyone.
Money Merge Account
I believe they type of system you're looking for is the Money Merge Account. United First Financial is currently the leader in MMA's for the industry. The basics of it are that you use the equity in your home to open a HELOC. All of your bills are paid out of the HELOC, and all of your income is deposited into the HELOC. The MMA software performs detailed analysis of your income vs. expenses and advises you to make extra principle pay-down payments on your primary mortgage using the funds that are available in your HELOC. Depending on your specific situation, following the MMA program can help you pay your mortgage off many years early, thus saving thousands (or hundreds of thousands in as in my case) in mortgage interest payments without altering your current lifestyle. With the MMA program you are simply putting your discretionary income to a better use than sitting in a savings or checking account. Here's a link to a blog that has a very good amount of information about MMA and how it works. Check out all of the archived blog postings to really get a good understanding of this program. Hope this helps. I personally think the MMA is a great tool, but like everything else, it may not be for everyone.
Money Merge Account
C
czygvtwkr
Guest
Well if you understand some high school math you can do the calculation yourself
No Longer A Skeptic
Hi Bosox…from my experience,
The usual response from someone to your question is, "If you can do basic math you can do it yourself". You, like myself, would like to get an honest experienced helpful answer. Given that these forums are open, you cannot control who responds, you sometimes get answers that are not helpful. People that say this have not really looked at the MMA thoroughly or they believe in their method that works for them and that is fine. They immediately hone in on, “It’s a SCAM don’t do it”. Instead of really researching it.
Investment Side
I am not a financial person, but I have investigated a couple of the MMA's and I was a skeptic at first. I suggest you look at the numbers yourself. One way to pay off your mortgage, of course, is through some long term investment of the income you have left at the end of the month and the tax return money you hopefully will save through the interest deduction on your mortgage. You put it into an investment that gains interest over time and at the end of that time you hope to have enough money to pay off or pay down your mortgage to an affordable level that you can retire on and still live your lifestyle.
MMA Side
Another method is the MMA, depending on the one you choose, it can not only be a way to pay off you mortgage early through interest cancellation but also a good budgeting tool, wealth builder, and it allows you to see how your today purchases or planned purchases affect your financial future. It’s an financial investment that pays for itself very quickly. Yes…the MMA is simple and it does use simply calculations, but who of us has the time to sit down and crunch through the numbers every month and continue to update the way you do this. The MMA providers are responsible for updating the software and making it better.
To look at the numbers yourself so that you can make a decision. Print or look at the amortization schedule for your home. I took mine and was able to copy it into an excel spreadsheet so that I could run calculations on the principal & interest columns to see how and when the MMA tool tells you to make a principal only payment from the HELOC using the banks money…YES…YOU ARE BORROWING FROM ONE LOAN TO PAY OFF another…AND IT WORKS. For example, let’s say the software told you to make a 5k payment to principal only. Looking at the Amortization schedule, compare how many monthly payments of principal the 5k gets you. Then calculate the interest column for the same number of months. It’s impressive to say the least.
The key thing with the MMA software is that it looks at your income, your expenses, your interest rates on your 1st mortgage and loan type and amount, as well as the same data for your HELOC and then tells you the exact amount to pay towards your principal so as not to incur too much debt in your HELOC than you can personally afford. The amount of interest you pay on the HELOC is controlled by depositing your income directly to the HELOC AS SOON AS IT COMES IN. It’s a change in the way almost all people do banking. I admit I was a bit nervous at first to, but not anymore…I think it’s pretty cool. Oh and your 1st Mortgage is a Closed end loan so the payment is determined by the type of loan, how long the loan is for and then the payment is based on the monthly fixed amount unless you have one of those adjustable rate mortgages. The HELOC is an Open Ended loan and the payment is calculated on the month end average. That is why depositing your income to the HELOC is so important…it minimizes the interest you have to pay. It takes a few months to get used to.
All you need is to have a certain amount of income left over at the end of the month. Just because you might have $1k left over at the end of the month does not mean you have to use it all. You can choose…it’s your choice. Let’s say you only have $200 to $400 that’s fine too…but there is a minimum for the program to work. Let’s say you run your numbers and you don’t have any income left over…by looking at your finances you can see where you can make cuts to the income.
My Side
I think we can do both depending on the amount of income you have left at the end of the month! I also have a 401k that I invest in through work so that helps to. Also, people will say, but what happens when you don’t have a mortgage anymore to reap the tax deduction benefit. Well my answer is, I buy an investment property or put my house payment into some other investment. Granted this is not for everyone…you have to be responsible and disciplined with your income and equity.
I personally investigated two MMA’s. I now wish I would have investigated the 2nd one more thoroughly. I purchased one and use it, but I prefer the other.
I hope this helps make your decision. If you have any other questions about my experience with using my MMA let me know.
Hi Bosox…from my experience,
The usual response from someone to your question is, "If you can do basic math you can do it yourself". You, like myself, would like to get an honest experienced helpful answer. Given that these forums are open, you cannot control who responds, you sometimes get answers that are not helpful. People that say this have not really looked at the MMA thoroughly or they believe in their method that works for them and that is fine. They immediately hone in on, “It’s a SCAM don’t do it”. Instead of really researching it.
Investment Side
I am not a financial person, but I have investigated a couple of the MMA's and I was a skeptic at first. I suggest you look at the numbers yourself. One way to pay off your mortgage, of course, is through some long term investment of the income you have left at the end of the month and the tax return money you hopefully will save through the interest deduction on your mortgage. You put it into an investment that gains interest over time and at the end of that time you hope to have enough money to pay off or pay down your mortgage to an affordable level that you can retire on and still live your lifestyle.
MMA Side
Another method is the MMA, depending on the one you choose, it can not only be a way to pay off you mortgage early through interest cancellation but also a good budgeting tool, wealth builder, and it allows you to see how your today purchases or planned purchases affect your financial future. It’s an financial investment that pays for itself very quickly. Yes…the MMA is simple and it does use simply calculations, but who of us has the time to sit down and crunch through the numbers every month and continue to update the way you do this. The MMA providers are responsible for updating the software and making it better.
To look at the numbers yourself so that you can make a decision. Print or look at the amortization schedule for your home. I took mine and was able to copy it into an excel spreadsheet so that I could run calculations on the principal & interest columns to see how and when the MMA tool tells you to make a principal only payment from the HELOC using the banks money…YES…YOU ARE BORROWING FROM ONE LOAN TO PAY OFF another…AND IT WORKS. For example, let’s say the software told you to make a 5k payment to principal only. Looking at the Amortization schedule, compare how many monthly payments of principal the 5k gets you. Then calculate the interest column for the same number of months. It’s impressive to say the least.
The key thing with the MMA software is that it looks at your income, your expenses, your interest rates on your 1st mortgage and loan type and amount, as well as the same data for your HELOC and then tells you the exact amount to pay towards your principal so as not to incur too much debt in your HELOC than you can personally afford. The amount of interest you pay on the HELOC is controlled by depositing your income directly to the HELOC AS SOON AS IT COMES IN. It’s a change in the way almost all people do banking. I admit I was a bit nervous at first to, but not anymore…I think it’s pretty cool. Oh and your 1st Mortgage is a Closed end loan so the payment is determined by the type of loan, how long the loan is for and then the payment is based on the monthly fixed amount unless you have one of those adjustable rate mortgages. The HELOC is an Open Ended loan and the payment is calculated on the month end average. That is why depositing your income to the HELOC is so important…it minimizes the interest you have to pay. It takes a few months to get used to.
All you need is to have a certain amount of income left over at the end of the month. Just because you might have $1k left over at the end of the month does not mean you have to use it all. You can choose…it’s your choice. Let’s say you only have $200 to $400 that’s fine too…but there is a minimum for the program to work. Let’s say you run your numbers and you don’t have any income left over…by looking at your finances you can see where you can make cuts to the income.
My Side
I think we can do both depending on the amount of income you have left at the end of the month! I also have a 401k that I invest in through work so that helps to. Also, people will say, but what happens when you don’t have a mortgage anymore to reap the tax deduction benefit. Well my answer is, I buy an investment property or put my house payment into some other investment. Granted this is not for everyone…you have to be responsible and disciplined with your income and equity.
I personally investigated two MMA’s. I now wish I would have investigated the 2nd one more thoroughly. I purchased one and use it, but I prefer the other.
I hope this helps make your decision. If you have any other questions about my experience with using my MMA let me know.