Money Merge Account


#1

Was wondering if anyone has any experience with an accelerated mortgage product called Money Merge that is advertised to pay a 30 year mortgage off in 10 - 12 years.


#2

Dan,

I investigated that and similar plans. I’m using a plan you can review at www.speedequity.com

I’m not sure if it gives you quite the detailed plan as some of the $3500 plans, but its less than $200, so I think its a good deal. I’ve only been using the system for a couple of months, but have already seen some benefit and more than recouped my investment.


#3

I don’t have any info on these companies but I have to ask why one would spend money for a company to help you accelerate a mortgage?

If you wanted to turn a 30 year mortgage into a 15 year mortgage, you could easily add a few hundred bucks (depending on the size of the mortgage) marked to be paid directly to principle each month.

If I recall correctly offhand, the example often given is $100 per month paid extra and paid directly to principle reduction turned a 30 year $100,000 mortgage into a 15 year mortgage.

Playing with a financial calculator or program should tell you exactly what you need to pay yours down to that level or more.

The beauty of this is that its simple, cost you no fees and if you get into a bind, you are not required to pay that amount.

Just wondering why.

Tony


#4

Dan,

I have to agree with Tony on this - if you want to pay off your mortgage faster just pay extra each month on principle.

I listen to the Clark Howard Show quite often and found this clip of him discussing these money merge type companies - you may want to check it out and do some other research online before paying for something like that:

Another good, balanced article on MMA’s is here:

Shawn


#5

Maybe my mind is limited in thinking on this topic but here is what I see. You can either pay more in principle reduction payments and let the time value of money work for you more or you can pay more often than monthly so as to provide the same effect.

Paying some other company to do this makes no sense to me but again, maybe I am missing something.

Are they re-negotiating the loan for you somehow that allows this same affect without you either paying more money or more often?

Again, like Shawn I just don’t see it. Something sounds fishy to me is all but if I am wrong, it would not be the first time.

Tony


#6

Thanks for the input guys, this is probably one of those things that sounds too good to be true…and is !!!

Dan