quote:

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Originally posted by Dennis_IL

It works, but I prefer the CMG Home Ownership Accelerator.

However, it’s not for everybody because the borrower needs to have positive cash flow.

CMG is a wholesale lender and as such has guidelines for the loan. Anyone can get into the MMA, even if it is not a good idea for them to do so. So long as they can get the cash to buy the program ($3500). The MMA is becoming popular because anyone can sell it through their MLM structure.

The program will tell you when to pay off debt, pay down your mortgage...etc. The HOA basically eliminates the need to juggle your debt as anything you put into it is taken away from the principle immediately.

The haters will fall into one of the following categories:
1 - MMA zealots who can't (or won't) see past the hype to see that the HOA is doing the same thing as the MMA, but with out all of the juggling or using the software. Often they are people that are not licensed to originate loans so selling the MMA is their only choice between the two.
2 - People that won't admit it works for SOME borrowers and bring up reasons it won't work for EVERY borrower. Anyone I know that is associated with these programs fully admits that a borrower has to fit a sound financial profile in order to make the program work. I am surprised that so many have an "all or nobody" attitude toward any loan program.
3 - Some are just plain bad at math. I built an excel spreadsheet to see if the HOA would work. I did not rely on the CMG version on their website; I wanted to see if I could come to the same conclusion putting real world numbers through my simulator. I did, and it worked. That's when I was convinced. Some will claim that mathematically it won't work, they have obvious not tried, or are bad at math.

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Originally posted by willpage

Anybody ever try this, use this, attempt to comprehend this...?

What is the Good, the Bad, and the Ugly of this program that connects your bank account to your mortgage HELOC ?

"The Money Merge Account program uses an advanced equity line of credit as a vehicle or a tool to drive the program"...

"The online Money Merge Account system makes a virtual connection between your bank account, the advanced line of credit, and your primary mortgage. Each time you transfer income into your account, it registers as a decrease to your mortgage balance."...

"Combined with the Money Merge Account's web-based system, this creates a formula in which the money in your line of credit account generates an interest cancellation on your primary mortgage."

Uh... What...?

http://www.u1stfinancial.com/Default.aspx?tabid=116

Thanks,
Will

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quote:

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Originally posted by NegAm

Your best bet is to find someone to sitdown and go over the program with you.

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Originally posted by technocrat421

http://seattletimes.nwsource.com/html/businesstechnology/2003069091_stupidinvestment18.html

http://www.butterhomes.com/blog/index.php/mortgage-accelerator-under-fire-australian-securities-and-investments-commission-taking-action-against-mortgage-brokers

http://www.asic.gov.au/ASIC/asic.nsf/byHeadline/07-144%20Court%20finds%20major%20mortgage%20broker%E2%80%99s%20conduct%20misleading%20and%20deceptive?opendocument

http://www.fido.gov.au/asic/asic.nsf/byheadline/07-95%20asic%20obtains%20injunctions%20against%20loan%20calculator%20operator

http://www.asic.gov.au/asic/asic.nsf/byheadline/04-300+No+credit+for+misleading+loan+calculators?openDocument

http://www.asic.gov.au/fido/fido.nsf/byheadline/Line+of+credit+mortgages?openDocument

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quote:

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Originally posted by NegAm

Then I take it you already grasp the concept. I was under the impression you didn't understand and were asking for help.

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quote:

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Originally posted by Dennis_IL

It works, but I prefer the CMG Home Ownership Accelerator.

However, it’s not for everybody because the borrower needs to have positive cash flow.

CMG is a wholesale lender and as such has guidelines for the loan. Anyone can get into the MMA, even if it is not a good idea for them to do so. So long as they can get the cash to buy the program ($3500). The MMA is becoming popular because anyone can sell it through their MLM structure.

The program will tell you when to pay off debt, pay down your mortgage...etc. The HOA basically eliminates the need to juggle your debt as anything you put into it is taken away from the principle immediately.

The haters will fall into one of the following categories:
1 - MMA zealots who can't (or won't) see past the hype to see that the HOA is doing the same thing as the MMA, but with out all of the juggling or using the software. Often they are people that are not licensed to originate loans so selling the MMA is their only choice between the two.
2 - People that won't admit it works for SOME borrowers and bring up reasons it won't work for EVERY borrower. Anyone I know that is associated with these programs fully admits that a borrower has to fit a sound financial profile in order to make the program work. I am surprised that so many have an "all or nobody" attitude toward any loan program.
3 - Some are just plain bad at math. I built an excel spreadsheet to see if the HOA would work. I did not rely on the CMG version on their website; I wanted to see if I could come to the same conclusion putting real world numbers through my simulator. I did, and it worked. That's when I was convinced. Some will claim that mathematically it won't work, they have obvious not tried, or are bad at math.

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quote:

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Originally posted by willpage

quote:

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Originally posted by NegAm

Then I take it you already grasp the concept. I was under the impression you didn't understand and were asking for help.

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Does understanding the dictionary definition of religion ever stop anyone from asking:
"Why am I here?"

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quote:

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Originally posted by Tsnyder

quote:

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Originally posted by Dennis_IL

It works, but I prefer the CMG Home Ownership Accelerator.

However, it’s not for everybody because the borrower needs to have positive cash flow.

CMG is a wholesale lender and as such has guidelines for the loan. Anyone can get into the MMA, even if it is not a good idea for them to do so. So long as they can get the cash to buy the program ($3500). The MMA is becoming popular because anyone can sell it through their MLM structure.

The program will tell you when to pay off debt, pay down your mortgage...etc. The HOA basically eliminates the need to juggle your debt as anything you put into it is taken away from the principle immediately.

The haters will fall into one of the following categories:
1 - MMA zealots who can't (or won't) see past the hype to see that the HOA is doing the same thing as the MMA, but with out all of the juggling or using the software. Often they are people that are not licensed to originate loans so selling the MMA is their only choice between the two.
2 - People that won't admit it works for SOME borrowers and bring up reasons it won't work for EVERY borrower. Anyone I know that is associated with these programs fully admits that a borrower has to fit a sound financial profile in order to make the program work. I am surprised that so many have an "all or nobody" attitude toward any loan program.
3 - Some are just plain bad at math. I built an excel spreadsheet to see if the HOA would work. I did not rely on the CMG version on their website; I wanted to see if I could come to the same conclusion putting real world numbers through my simulator. I did, and it worked. That's when I was convinced. Some will claim that mathematically it won't work, they have obvious not tried, or are bad at math.

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Wait a minute, Dennis... are you saying you didn't
spend two years and invest a million dollars to develop
your spreadsheet?

Tsnyder
.

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quote:

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Originally posted by celtsfan75

Has anyone stopped to consider how borrowing form their Adjustable rate Heloc at 8-9% to make lump sum payment on a 6% mortgage (motly fixed) can make any mathematical sense whatsoever???

Borrow at 9% and paydown debt at 6..repeat that 3 times slowly and then try to explain the math of it to me.

I get the heloc as a checking account as that makes sense, but these programs advocate taking lump sums and putting them on the mortgage yet say nothing about the fact that once the mortgage is gone you are left with a heloc to pay

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Originally posted by EquitySavvy

For anyone who has heard of UFirst's MMA system, I have found a better one!

It is NOT MLM, it is more user friendly and much less expensive. It is called the EquityGenie. I can send more info on it to anyone who would like it....just shoot me an email.

And for celtsfan75, I would much rather pay 9% on 10,000, then 6% on 500,000....do the math.

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Originally posted by RGK2394

Can anyone just break down, in layman's terms, exactly what they do and how it works to justify why this program/software is $3500? I have a few friends in the biz across the country that are bugging the sh*t out of me to get on board with this, oh it's so great/easy/whatever, but even they cannot break down the benefits of it and how it works. Someone, anyone, if you are against the company/idea of this, or a rep and love it, tell me about it like I am 5 years old so I understand why/if it is something I should even look further into. When all I hear about something is what it does and how wonderful it is, and it is not backed up by any fact, detail or anything else of any substance, it screams scam and MLM hustle to me. Please educate me.

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quote:

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Originally posted by NegAm

quote:

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Originally posted by RGK2394

Can anyone just break down, in layman's terms, exactly what they do and how it works to justify why this program/software is $3500? I have a few friends in the biz across the country that are bugging the sh*t out of me to get on board with this, oh it's so great/easy/whatever, but even they cannot break down the benefits of it and how it works. Someone, anyone, if you are against the company/idea of this, or a rep and love it, tell me about it like I am 5 years old so I understand why/if it is something I should even look further into. When all I hear about something is what it does and how wonderful it is, and it is not backed up by any fact, detail or anything else of any substance, it screams scam and MLM hustle to me. Please educate me.

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Here’s a simple breakdown of the concept. You open a heloc and use it like a bank account. All your bills are paid thru the heloc and your paychecks are deposited into it as well. By doing this, you will lower the amount of daily interest that accrues, thus reducing more principal.
Also, at certain times the program will tell you to pay a chunk of money towards your 1st mortgage from the heloc. This reduces the amount of interest you have to pay on the 1st as well, and allows more of your payment to go towards principal. This is the reason why most people can’t explain how you can payoff your home without more money coming out of pocket. The “secret” is daily interest.
The software will also calculate your payoff projection each month, so as your budget increases or decreases, it’ll adjust accordingly. The time it takes to payoff your home is dependant upon discretionary income available each month. So during those holiday seasons where you may have less money, your projected payoff will increase since it's basing the calculations on current data.(a common question asked by many)
There’s a little more math to it, but you can get the idea with the example below.

Joe makes $5k a month
Joe's bills, mortgage, and expenses are $4k a month

30 yr fixed: $150,000 7% $1,000/mo.
Heloc: 3,500(cost of the MMA) 9% $100.00/mo.
(fyi, yes i can calculate, for simplicity i rounded up or down )

Month 1: Deposit $5k paycheck to heloc, and use $5k from heloc to pay down 1st.
1st balance: $150,000-$5k payment= $145,000
Heloc:$3,500 + $5k(to 1st) + $4k(mtg/expenses)=$12,500-$5k paycheck deposit=$7,500

Month 2: Deposit $5k paycheck to heloc only.
1st balance: $145,000
Heloc: $7,500 + $4k(mtg & expenses)=$11,000-$5k paycheck deposit= $6,000

Month 3: Deposit $5k paycheck to heloc only.
1st balance: $145,000
Heloc: $6,000 + $4k(mtg & expenses)=$10,000-$5k paycheck deposit= $5,000

Month 4: Deposit $5k paycheck to heloc only.
1st balance: $145,000
Heloc: $5,000 + $4k(mtg/expenses)=$9,000-$5k paycheck deposit= $4,000

Month 5: Deposit $5k paycheck to heloc, and use $5k from heloc to pay down 1st.
1st balance: $140,000
Heloc:$4,000+ $5k(to 1st)+ $4k(mtg/expenses)=$13,000-$5k paycheck deposit= $8,000

The result....reducing interest quickly and paying off your home in less than or half the time.

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quote:

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Originally posted by RGK2394

quote:

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Originally posted by NegAm

quote:

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Originally posted by RGK2394

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So at the end of month 5, if I've understood this correctly, you've paid down 10k in principal from your mortgage @ 7% and accumulated 8k in charges on your heloc @ 9%... In addition to not having saved anything that actually pays you interest, unless we are to assume the difference in the 5k earned versus 4k expenses is being saved in an interest bearing account? Also, does this, in theory, work for someone, such as 99% of the people on BO, whose income fluctuates from month to month? Or is this geared and beneficial long term to only those who have a steady, pre-determined on net income every month? Your information was helpful and somewhat enlightening, but at the end of the day are you not in essence simply shifting your mortgage debt from your primary to your higher rate heloc? Or am I retarded and missing the *pop* here?

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quote:

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Originally posted by RGK2394

Does anyone else have a different take on this? Why do you like it/hate it. Why is it legit/think it's all B.S.?

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quote:

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Originally posted by mortgageplanforlife

"If you put aside your discretionary money each month into an interest bearing account, you will be outperformed by the interest reduction of the program. "

Really? How so? All of you that sell this program are acting like the HELOC is what is actually paying down the mortgage. IT IS NOT. IT is the discretionary income. And this can be done without MMA and without the HELOC that you are paying 8% to 9% on.

If you have a money market account PAYING you 5% before you make the lump sum payment to your mortgage, how in the heck is that worse then PAYING the BANK 9% on the AVERAGE daily balance (see you are NOT canceling out the interest, the only way to do that would be for the average daily balance to be ZERO!)

But the usual argument from all of you is, "It works" and "You really don't understand it"

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quote:

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Originally posted by mortgageplanforlife

"If you put aside your discretionary money each month into an interest bearing account, you will be outperformed by the interest reduction of the program. "

Really? How so? All of you that sell this program are acting like the HELOC is what is actually paying down the mortgage. IT IS NOT. IT is the discretionary income. And this can be done without MMA and without the HELOC that you are paying 8% to 9% on.

If you have a money market account PAYING you 5% before you make the lump sum payment to your mortgage, how in the heck is that worse then PAYING the BANK 9% on the AVERAGE daily balance (see you are NOT canceling out the interest, the only way to do that would be for the average daily balance to be ZERO!)

But the usual argument from all of you is, "It works" and "You really don't understand it"

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quote:

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Originally posted by mortgageplanforlife

I am not subjective. I hate this program. I am a former financial adviser, my degree is finance with a minor in accounting.

I did the MATH on this and it is just a total ripoff.

People keep talking about interest cancellation...Um if you didn't have the line of credit you wouldn't need to cancel the interest you are paying it. You are losing opportunity benefit with the money you are using to cancel this said interest. Another thread on this is locked, someone went over the "numbers" and it baffles me that this person is allowed to handle someone's biggest financial investment.

Here are some real numbers for someone who has a $200k home loan. Nets $5000 per month and had $4000 in expenses. If you USE the MMA, in 30 years you will have $609,808 in the bank and a paid off home. I came up with this by the following: The home will be paid off in 123 months by applying $5000 in to the principle every 5 months. Then after month 123, you would invest the mortgage payment PLUS $1000 into an account getting 5% rate of return. The $609,808 includes the tax benefit of the mortgage interest you did pay (this was $76,300, which is the tax benefit compounded by a 5% rate of return on that money)

Sounds great, right?

Well here is where the real math kicks in. If instead of doing an MMA, you took the $1000 per month of discretionary income and invested it at 5% rate of return (for those saying that isn't guaranteed, you are right, but over the last 100 years, pick any 30 year period you like and the stock market has returned a higher average yield...plus I chose 5% because that is what you can get with some of the online MONEY MARKET ACCOUNTS right now!) You would have $544,886 in the bank...sounds worse, right? Um, you will also have a tax benefit of $188,000 (this is the tax benefit, with the same 5% rate of return if you invest the benefit)...so in 30 years you will have same paid off house and a total of $733,645.

So MMA COSTS you over $124,000...and you thought it was just $3500!!!!

Also if someone really wants to pre-pay their mortgage.....I can show you how you can have your money in a 5% money market and when you get to $5000 saved, make a mortgage payment,I can make this in excel in 5 minutes...just $299 is what I will charge. And because of my special algorithm of adding prior balance plus income minus expenses will make sure to notify you when you are greater then $5000...you will save a bundle...and I promise IT WORKS!

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quote:

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Originally posted by NegAm

Thats why I posted a real life example with rate and income for mortgageplan to breakdown. Let's compare apples to apples.

A good point was made about the motivational aspect of it as well. Maybe that's why 1/3 of homeowners in australia are on the program.

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quote:

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Originally posted by NegAm

Mortgageplan-
Run this one using your method of applying the discretionary income to the mortgage each month and/or interest bearing account.
Loan amount $498,750
Rate: 7.5% I/O
Income: $7,450
Mortgage: $3,117.19+impounds= $4,013
Expenses: $1,454
Discretionary Income: $1,983

Let's see what you come up with.

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quote:

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Originally posted by mortgageplanforlife

What was wrong with MY apples to apples comparison. Show us all how my numbers on the MMA are so FAR from accurate. You keep saying it works, you keep saying my numbers are "wrong"...prove it.

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