Pay your mortgage off early, should you use MMA
I received an email from an associate who is a real estate agent, appraiser and mortgage broker and who has a background in finance regarding a new software product designed to save you money by paying your mortgage off early.
"I am writing this to you with a sense of urgency to take a hard look at what is about to happen with the Money Merge Account (MMA). Just recently, Broker Banker, a leading publication for Home Loan Originators, came out with their national monthly magazine and it has United First Financial on the cover along with a nine page article. More national press is coming.
Please read the entire article at the link below:
www.brokerbanker-digital.com/brokerbanker/2007_vol108/
Key points about the MMA
* It has already been beta tested among 400 families in Denver for two years prior to being launched in the spring of 2006 with the results often exceeding the analysis by as much as 20%!
* It offers a Money Back Guarantee promising homeowners the results will at least match the analysis.
* The Better Business Bureau has processed "0" complaints in the last 36 months on United First Financial.
For those professionals who include, real estate agents, mortgage brokers, insurance agents and financial planners, please recognize your competitors will be offering this life changing software to their clients and maybe yours. The loyalty and trust factor could be infringed upon in an existing relationship with your client if a competitor brings the MMA to their attention and not you. Please consider this sequence of events because there is a strong possibility it will happen in the near future.
Let me provide you with two very powerful testimonials from industry professionals that are included in the article. Even though these quotes are from mortgage brokers you can substitute mortgage broker for any type of real estate or financial professional in my opinion.
"Any mortgage broker who does not show their clients how to accelerate their mortgage payoff through this program is crazy. My clients keep asking me why hasn't anyone told me about this before? This program has created a referral brush fire for me."
Kelly Kline
Mortgage Broker
Carlsbad, CA
"As an experienced mortgage originator and Founder/Publisher of Broker Banker Magazine, I've come across every imaginable product designed to help mortgage originators generate more business. Some have been great, most have not. I have never personally and/or publicly endorsed any product. However, I'm endorsing this one. It's the Real Deal."
Brian Topor
Executive Publisher of Broker Banker Magazine
.
Please feel free to call me if you have any questions."
I think it is an excellent idea to pay a 30 year mortgage loan off early and there are many ways to accomplish that objective. What I personally have always done is pay additional principal every month equal to 10% of my payment. My basic understanding of doing this is that you will pay the loan off in approximately 22 years rather than 30 and save a considerable amount of interest.
Another way to accomplish it would be to pay bi weekly rather than monthly and since that coincides with how many people receive their paycheck, that makes it easier for many to budget. The biggest problem for many people is their inability to discipline themselves to consistently make the equivalent of an extra payment a year and some services have appeared to do it for them for a fee.
This software claims to be much bigger and better than that and it is said that similar programs have been in use around the world but only recently has this been available in the United States. The company behind it is United First Financial and here is a link to their website for more information.
Their promises are big, the results might be even better but please realize, my purpose in writing about this concept is merely to introduce the program to you if you haven't heard about it as yet and to urge caution and a complete investigation on your part if you have heard and are considering it. I am not familiar enough with the program to endorse it nor would I choose to.
What I know is that the software costs approximately $3500 (a sales commission is being paid to the authorized sellers of the software) and you must be able to take a Home Equity Line of Credit (HELOC) out in order to utilize the program. They are suggesting that you will pay off your 30 year mortgage in as little as 8 to 11 years. That is a big promise but if it is the "real thing" as was said above, it would help homeowners significantly.
Please note the disclaimer on their website and if you choose to purchase this program, please consult with your advisers prior to doing so.
United First Financial does not provide accounting, tax, legal, real-estate, mortgage, or investment advice. Interested parties should seek and consult with persons or entities licensed and qualified in those areas for advice relating to those matters. United First Financial is not liable or responsible for claims or representations made by any party which are not included in the Money Merge Account Limited Guarantee.
Bottom line, building equity in your home is important and making additional payments to your mortgage is a smart idea. Please check this out but please, do your due diligence.