If you are somebody who is interested in paying off your mortgage early and can do so financially, then it might be in your best interest and you should proceed to pay it down as fast as you can without spending money you can’t afford to lose. There is no point in putting money towards a home loan when you can use that same money to save for retirement or invest it in something safe. There are many arguments as to why you should not payoff your mortgage, but the fact is once you pay it off you’ll have more money free to use and there is nothing wrong with that right?
You might be convinced that having a mortgage is good because of tax savings, but in reality you are just spending more money just to save money. For every dollar that you spend on your mortgage you are saving about 27 cents in taxes. Now if you did not have that mortgage guess how much money you will have? Without that mortgage on your plate you will still only have only 73 cents. Do you still think it’s a winning situation?
Many people also have a false sense of security and never prepare for the worst case scenario. No matter how stable your job is or how much money you might make, the fact is it could all be gone in the blink of an eye and your lifestyle could change drastically overnight. This is especially true in today’s world and economy where people are losing high paying jobs left and right and foreclosing on there homes that they once though they could afford with there stable jobs and income.
The fact is that there are options available to the home owner wanting to payoff there mortgage faster and start saving for retirement sooner. Millions of people all around the world are starting to implement these systems successfully and are saving thousands of dollars in interest.
The traditional ways being promoted by banks for mortgage acceleration are typically bi-weekly payment systems which do work, but are not as effective as the newer money merge account system or mortgage checking account as it is sometimes referred to which is a program that originated in Australia.
How does a money merge account work?
It’s really not that complicated at all. A money merge account is simply a HELOC or home equity line of credit. Even if you can’t get one or don’t qualify for the right type of HELOC to use with the system, you can still achieve the same results with a checking account linked to an overdraft protection or line of credit.
This is a basic overview of how the system is used:
1. You set up a HELOC or checking account with overdraft protection.
2. You withdraw a large sum of money determined by the system to pay down your mortgage.
3. All of your income is deposited into the HELOC or checking account to pay down the balance.
4. Every now and then when required by the system you take out more money from the HELOC and apply it towards the mortgage principal.
5. Any money needed for an emergency can be withdrawn from the HELOC and money is taken out as needed for bills and living expenses. It only works if you have money left over after all your bills are paid.
If you have a negative cash flow then this system will not work for you. It only works if after you have paid all your bills every month you have money remaining.
Although credit lines carry a higher interest rate then a typical mortgage, the reason that this system works is that these credit lines are cheaper to maintenance and they calculate interest in a totally different way that you can use to your advantage to save. Your basically using the banks own math against them!
There is a lot of controversy surrounding the money merge account system and also many companies charging ridiculous prices to set them up. Although this can be done on paper with good math skills, it is recommended to get some type of mortgage acceleration software that tells you when and how much to deposit into your mortgage and HELOC. It will also help you maximize your interest savings.
Many of the people against these systems and trying to give them a bad name are usually mortgage brokers who only are interested in getting people to refinance so they can earn a fat commission check. Some companies like United First Financial charge upwards of $3500 to setup the account, but you can get the same thing for thousands of dollars cheaper with the Mortgage Magic System.
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Do You Know The Alternatives To Rising Interest Rates?
2-You can use the Money Merge Account system. This is a software program which accounts for all of a users financial resources and makes recommendations to the user on how to best allocate their financial resources.
Money Merge Account: Now Featured in SUCCESS FROM HOME MAGAZINE
“We started with a mortgage of $129452, and today it’s $66291 after using the Money Merge Account System for three years. It’s amazing to see how it reduces our principal balance and manages our budget in a way that we never could on [...]
Another Really Good Reason to Pay Off Your Mortgage Early
In my mind, this is just one more compelling reason why the Money Merge Account program from United First Financial is such a necessary financial tool. By properly leveraging your discretionary income, you can pay off your mortgage.
A Different Perspective of the Money Merge Account
In the last handful of years in the United States, there has been a tremendous increase in interest in the Money Merge Account by homeowners that want to get.
What is a Mortgage Merge Account
Mortgage Merge Account often gets confused with the Money Merge Account
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