Money Merge Account what is it?

[webmaster]

I was just reading an analytics post by Matt over at AR where he is talking about the surprising amount of traffic generated by the phrases revolving money merge accounts - I googled them quickly but couldn't really find much - what the heck is a money merge account and why would that (To be obscure phrase) be spiking in traffic lately?)

[Malok]

Here's a post that discusses it:

http://www.thesimpledollar.com/2007/...ome-borrowers/


And here's a mortgage broker forum discussion that has an unfavorable view of it:

http://forum.brokeroutpost.com/loans/forum/2/95315.htm

[BrandonSternfield]

Interesting read, but I would personally want to save the 1.5k-4.5k fee, and just set it up myself. I think for some people (like my parents) it would be a great tool.

With proper management you could do it yourself for free though.

To do a quick break down (there are a LOT of posts there lol):

Let’s say you had a mortgage with $1,500 payments and you set up a money merge account. Each month, you received $3,500 in paychecks, but only spent $1,200 (and sometimes less). That means that automatically $2,300 (and sometimes more) goes towards that mortgage each month - an extra $800 towards principal every single month. This means a 30 year mortgage would be paid off in 13 years and two months.

Or like I said, you could do it yourself, and save the few thousand dollars:

Start using a high-interest checking account (like Electric Orange, which gives you 4% interest) and then send every cent you can to the mortgage payment. Going back to the earlier scenario, if you always kept $1,000 in there as a buffer, got paid your $3,500 at the start of the month, spent $1,200 throughout the month, then sent off everything down to $1,000 at the end of the month to your lender, you would pay an average of $813 extra each month (that extra $13 comes from interest on the checking account). Given those numbers, you could pay off the mortgage in just barely over 13 years (the final payment is a tiny one).

Both excerpts are from the link in the post before this one.

[Benjamin Dona]

It's a software program you buy (Ave Cost Around $3K) that supposedly will show you how to save interest on a home loan by following their setup. Nothing new, been around for a few years. Basically its just a mathmatical gimmick you could do on your own if you were so inclined. Why anyone would want to put extra money into their house as an investment is beyond me though. It won't pay you any interest or dividends and normal average appreciation is only 3 to 5% at best. Plus, it costs money to get it back out if you need it. I'd say talk to a good financial planner. There are a ton of better places to put your money in my opinion. Just my 2 cents though. Everyone has their own thoughts about carrying a mortgage debt.

Here's a description from one of the companies that offers it:

http://www. u1stfinancial.com/MoneyMergeAccount/HowItWorks/tabid/116/default.aspx

[BrandonSternfield]

Personally, I like the idea of using your own high yield account and doing it yourself. Paying off your mortgage that fast is nice

[Lydia]

Hey, in only about 29 years, I'll own my own home (and the note.) ;-)

[Tom M]

It's funny that I was here for a completely different reason (to invite any and all members of this forum to come and register their services for free on our site), and I found this subject.

The money merge account subject is popping up everywhere, as well as things like CMG, MAPs and other programs. We have decided to start doing some research and invite people to come talk about these programs in detail.

If anyone finds more info, would you be willing to contact me, or come to www. mortgagespeakout .com and post it?

My original invitation (which I will post in other areas of this forum) is to all of you professionals, to list your company, services and knowledge on our site, so we can drive customers to you.

Here's to paying off your mortgage, so you can buy another one--regardless of the program you use!

Best Wishes,
Tom