Is this legitimate?

Hi Martin,

I did browse through the site and what I think is, they are probably talking about Money Merge Account software program using which they can help you pay off your mortgage faster. Well, there has already been a discussion on the Money Merge account in this forum. Please have a look at what the experts here have to say.

Take Care

Prime clients are 65%LTV refis, good credit, good disposable income. No software purchase required, no prepayment penalty, can buy down the margin to 0.75% over the 1-yr LIBOR (so closing costs can be quite high, not unlike an FHA with its upfront MI payment).

The lender suggests that you will never need another loan, because you can -- if needed -- access your equity routinely. Otherwise, monthly deposits (including rental property income, etc.) can work away at the principal balance. Essentially, the monthly payments reduce with time.

All mortgage products have a target base -- this one has had good success in other countries, and it is starting to make sense now with the lower LIBOR.

edited - please stop advertising this site

They are just charging you for what you can do yourself for free.

i havent immersed myself in this product, but i am in agreement with lisa on her point, and i don't feel that there is sufficient value in the product.

Martin,

Welcome!

I can't seem to find that news clip anywhere but on youtube and on mma sales sites. That doesn't seem very legitimate to me. You would think CNN and the likes would play it nightly... if it where true.




Now Charles, I am going to go through this 1 time.

"Prime clients are 65%LTV refis, good credit, good disposable income. No software purchase required, no prepayment penalty, can buy down the margin to 0.75% over the 1-yr LIBOR (so closing costs can be quite high, not unlike an FHA with its upfront MI payment)." What? Prime clients are anyone willing to pay the $3500, have you listened to their spiels? Or are you referring to something else?

"The lender suggests that you will never need another loan, because you can -- if needed -- access your equity routinely. Otherwise, monthly deposits (including rental property income, etc.) can work away at the principal balance. Essentially, the monthly payments reduce with time." Yes, that is what a checking account does. It lets you pay your bills. And what happens to the monthy payments like cars, electricity, phone bills, etc. They don't go down, are you paying interest on them when the mortgage should have been paid off?

"All mortgage products have a target base -- this one has had good success in other countries, and it is starting to make sense now with the lower LIBOR. " No no and hmmm NOOOOOOO. That is nonsense and there is no real proof (once again) that this works anywhere... Australia included. Math is math and it doesn't matter what continent you are on the calculators work the same.

All available products should be described to qualified clients -- mortgage brokers exist as a the best resource for homeowners to manage their chief investment.

If a homeowner wants a 30-year FIXED mortgage, let him go buy one. If the homeowner wants to determine what financing product best fits his/her need, that homeowner should investigate all available products -- these are only available through brokers.

Keeping an open mind to finance marketing will always keep you competitive in the ever-widening mortgage pool.

I have no desire to be competitive... especially if it means compromising my clients.

Charles, honestly have you really researched this and looked over my numbers. We aren't talking about trivial amounts of money here.

The only way I see to describe these products is to mislead and dance around the real facts. And that is not selling there is another word for it.

I am going to refrain from discussing this with you, my friend. Obviously, I am walking into your brick wall. I don't ever try to sell an idea to an unreceptive client -- or, an unqualified client.

Good Business Luck to You! Remember: Stay competitive!

At one time, adjustable mortgages did not exist. Tell me, do you hold the same regard for Reverse Mortgages?

It is not a brick wall Charles. I am more than receptive if you want to show me something, anything legitimate about this program. Show me the numbers. What is unqualified about anything I have stated. Again have you read the other posts? I have broken this down day by day and it simply doesn't work. The math is all I care about because no matter what we say... at the end of the day if I have an extra $100... that is extra. I would never sell a product to my client telling them I am going to save them money knowing that it will really cost them money. I would instead show them how prepaying on their mortgage can save them unbelievable amounts of money. I typically have the conversation when I give them the TIL and they say..."wow what is that number there that is way more than what we are paying for the house. The funny part is that is why the sales pitch for these accelerator programs sounds so good. Everyone wants to save money and most of what they say is true, so why can't it all be true, right?

As usual instead of doing so... you, like many many others are simply changing the subject and deferring. What does a reverse mortgage or an ARM have to do with a mortgage accelerator program. I welcome being proven wrong and this would be a great place for it since so many people read these forums. I'm no rocket scientist from NASA and I'm definitely not Australian so maybe I am just incapable of understanding such revolutionary and space age ideas and concepts.

Fair enough! I do like your sense of humor, too.

I did send you the lender's link privately, since the Community removed it from an earlier posting -- which is fine, and proper.

I encourage you to run your own numbers through their engine. You'll be impressed.

Of course, I had reviewed all the posts before jumping into this thread -- but, I have difficulty following your scenario. Your example of a $60k income owning a $90k home mortgage in a 30-yr product is unusual on its face, though -- why not simply buy a 10-yr FIXED if they can afford to double their monthly payments in the 30-yr.? I haven't run those numbers...

I am not familiar with the 'United' products -- my only experience with their approach is with a competitor who does 'sell' their own software to manage the principal pay-down. I sell against this idea, myself.

It is a bit odd, though, that everyone can mention 'United', but my link to CMG was considered advertising. No problem!

I don't know what your last comment was meant to imply... I obviously don't support either. I removed the link as it was completely inappropriate. I see know inherent difference really between either product they both waste time with the same heloc structure.

We can use any scenario you like. I pointed out in an earlier post that it doesn't matter. What matters is should you decide to go that route is sticking with the same formula throughout (loan amounts, interest rates, etc)... that way the numbers are legitimate.

I did not receive any new links to any engines. Could you send it again through a PM.

The likelihood that any borrower can keep doubling his/her payment every month for close to 10 years is unrealistic -- unless you assume 60K income to pay a 90K mortgage, as in your 'example'. Again, I cannot follow your scenario on the HELOC -- must be because it's this other product and I am not familiar with it -- if you'd like to take another stab at explaining your point, maybe I'll get it. I can speak from experience about the CMG product -- I sell a wide variety of lenders' products.

Run the demo engine on the link I sent to you previously -- it's on this website -- I can see the original post I sent to you personally.

My earlier comment about adjustable mortgages is to simply point out that any financing other than FIXED, back in the day, was considered unorthodox. Many people think the same today of Reverse Mortgages, which have actually been around for quite some time -- they are making sense to a certain segment of mortgage holders today, as are money merge products.

Not again how many times this argument is comming up now :)
MMA and all the programs like it are expencive tools for money managing and nothing more. None of them can payoff your mortgage sooner or get you a better mortgage program.
They funnel all your available money into mortgage and that allows you to pay it off sooner. Anyone can do that on their own but alot of people dont.

It is exciting to see such emotional debate! I'll stop discussing this subject, since the purpose of this forum is to address visitors' questions.

My original purpose for jumping into the MMA discussion amongst mortgage professionals was strictly educational. In my years, I have always found that ideas that make sense are often right and legal, just as with guidelines. If a proven market product has customers who like the benefit their financing provides, then I am interested in learning all I can about it. While I may not buy it myself, certain circumstances will love the advantage this 'forced' additional-payment-to-principal provides.

Anyways, thanks for all the back-and-forth! Now, go close some loans!

Ahhh, I said a PM not a quick message. I always delete those. Either way I have seen that simulator before. It doesn't really tell you anything. Like what is the balance of the heloc at the end? Is it zero? And are all the savings used towards repayment.

I agree that it is good to have an open honest and educated discussion. I want to be sure to educate this sites visitors especially when it comes to products like these.

What I have been asking for and have asked several times (to other people) is to see a real scenario based on the software itself not the free simulator. I want to see a real life scenario that worked. And then compare that to just paying the same money to extra principle payments. I don't believe the interest cancellation and effective rates mumbo jumbo... and the only way to be sure one way or another would be to compare the 2 scenarios side by side... day by day... month by month... year by year. Not only would this be possible it would be easy... should someone come forward with their program and numbers.