Buyer Beware: Claims of paying off your mortgage early with MMA accounts

We received a message from someone who read this article that appearantly disagreed with the views and/or analysis presented.

However, all this person said was that we are "idiots" and didn't leave his/her contact information. I'd be happy to discuss the issue(s) you have, but I would need to know who you are and how to contact you.

If you feel so strongly, I would certainly expect that you wouldn't want to remain anonymous. I'm also a reasonable person, so if you can show me, with specific examples of a persons situation where it works, I'm happy to re-consider my opinion.

I understand your skepticism, as many people do have when they are introduced to the product. I understand that, yes it sounds to good to be true! I felt the same way when someone told me about it, but then I found out how it actually works. The fact of the matter is that if someone was able to do this on a calculator, then there would be no need for the software. This software is composed of a highly efficient and sophisticated algorithm. For someone to compute this, they would have to make a different calculation everyday, since a HELOC has a daily interest rate adjustment. It would also be nice if we can calculate the average American's expenses and income to be constant on a week to week or month to month basis.

Is this how you came to your conclusion Tony?

This software has been tested and approved back in 2002. They have been selling it for a few years now, if it were a scam and provided false information, do you believe they would still be in business today? It just takes the average person a little more understanding since most of us see mortgages and finance as a second language.I am a licensed Mortgage Broker, a Real Estate Investor and a United First Financial Agent and I stand by the Money Merge Account's principles, integrity and ability to help people pay of their mortgages sooner than ever thought possible. I recommend it to all.

I would greatly appreciate it if individuals like Tony would do their homework or attempt to understand something before making false accusations. So Tony, PLEASE contact me so I may educate you on the product. If your like myself and many others I've spoken to who like to save tens of thousands of dollars while owning their home free in clear in less time than expected, you to would end up with this product. If this money and time is of no concern to you, then I feel that this may be a personal problem to desire to waste time and enjoy paying interest.

P.S. The product also come with a guarantee!!!

I am more curious about the $3500 fee. If your concern is truly for the average comsumer then please tell us how you proposed to qualify the "average consumer" for a line of credit of at least 10K (taking $3500 right off the top).

I propose that Jack M. Guttentag Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania, otherwise known as "The Mortgage Professor" be approached with the MMA proposal and provide feedback. I encourage everyone who wants credible feedback to push MMA to make the request to Mr. Guttentag. Lets see if they put our ($3500) money where their mouth is!

Last night ABC news broadcasted a news report so I became curious probably as many others would. I checked out the website(s) ABC.com led me through and then continued this research any controversial data and evidence supporting both sides.

Here are my personal conclusions:

I think that the Money Merge Account is a step in the right direction to help consumers start paying for big ticket items. I’m not saying this program is perfect, but I believe that there are many individuals out there that have stagnant money lying in accounts. This program centers its gravity by focusing on managing individuals’ cash flow. And yes there are many individuals out there sitting with blocks of money that could be better managed especially when they have a mortgage.

I do have on major concern when thinking over how the line credit ties in with certain market conditions. One way is like Tony mentions is overlaying the interest from the mortgage with interest in the line of credit. If the line of credit rate is close to or lower of course you make out better, but if the line of credit is on the higher end more individuals will start to see financial troubles too – hence the housing credit market at current.

The Target – Why not treat the regular checking account (at a low positive balance – like bank required minimum balance) as the target focus and keep the line of credit as an emergency only funds source. If you keep a balance on a line of credit you are still spending extra money and many people may not notice this as much. Does the MMA keep track of how much interest and other expenses you pay out of the line of credit? Why not forecast this a little more clearly in the presentation. In addition, a line of credit gives you no tax return breaks like a traditional mortgage gives you.

Again, I am not saying this is a bad program. It is much better than sitting back and paying the traditional mortgage their basic one-time monthly payment. But, I do see some room for improvement and yes that would take extra time and money to develop. We are in the computer age and we will get there. Question is and only you can this individually – is it time to jump on the band-wagon yet?

I gave some thought to the claims made about the Money Merge Account process and arrived at the following observations. Can you payoff your primary mortgage in 8 to 11 years? Probably. You are taking out a HELOC and making a lump sum payment against your primary mortgage. What is not stated by the Money Merge Account proponents is that you are left with the balance of your HELOC. Here's an actual example using my existing 30 year mortgage at 5.625% and assuming that the paychecks you direct deposit into your HELOC match your bills, meaning your HELOC balance is stable. My principal and interest payment is $828.99 a month with the primary mortgage loan paid off after the 2/1/2034 payment. If I take out a HELOC for $90,000(with a current variable interest rate of 6.74%) and make a lump sum of $90,000 on my primary mortgage balance, my new loan payoff date is 6/1/2013. However, you are still left with the $90,000 balance on your HELOC and(assuming the rate remains at 6.74% for the next 6 years)you have paid $33,363 in interest on your HELOC ($505.50 a month for the remaining 66 months of the primary mortgage)– a total of $123,363. The $33,363 in interest is over and above your primary mortgage payment because that remains the same whether you're using MMA or not. If I did not use MMA, my mortgage balance after the 6/1/2013 payment would be $122,037. If I made an additional monthly payment $505.50(my monthly HELOC interest payment) my primary mortgage balance after the 6/1/2013 payment would be $82,426 which is less than what I would owe on the HELOC - $90,000.

This example does use a stable average daily balance for the HELOC and it also assumes that the variable rate will not increase over the life of this example. After working out an actual example, I have decided to save $3,500 and continue my 30 year mortgage. While this is not a perfect example it gave me enough information to make my decision.

I say apply the $3,500 to your mortgage instead of paying for the software. This alone will reduce the mortgage term by almost 18 months. (Based on a 200K 30YR 6% loan)

I don't need fancy software to manage my money. It's a scam in way it's sold.

First off, I don't sell the MMA. Here's my understanding of how it works:

You get your HELOC, and the software tells you how much to pay toward your mortgage each month (either the minimum payment, or more). Essentially what you're doing is 'borrowing' money from your HELOC to pay down the mortgage principal so that the monthly interest calculation is lower, then depositing your paycheck back into the HELOC to lower the daily balance back down to minimize the daily calculated interest. Sometimes the software tells you to just make your basic payment to the mortgage, other times it instructs you to pay more.

I know I'm not doing this proper justice. I know it's unconventional, and I'm not convinced yet either, but I'm still exploring it. I have to admit that I'm a little disappointed with Tony's original article. He clearly missed the point of the $2845 payment being for that month, and not EVERY month. His statement is just flat-out wrong.

How did they come up with a price of $3,500? Somebody is getting rich selling this. They do have a nice sales pitch. I guess it's priced at what the market will bare. The agents (sales reps) rub me the wrong way. I can imagine how they think. Lets see, If I sell 10 programs a month X 12 that equals $420,000 for the year - expenses. Hum, great, with all this money I'm making I can buy that boat, etc etc. - and most of all, I'll be able to pay off my mortgage in a couple of years.

I hate to admit it but I really bashed the MMA software initially like so many others. I'm pretty glad I did not write an article like this though:) Man, it is way off base! Give me a call & I will explain it to you... I was in your shoes at one time so I will help out. After someone properly explained this system to me I started seeing the light.

Here are the major complaints:
- The HELOC is at a higher interest rate
A: Yes it is. However, the analysis COMPLETELY takes into consideration the interest charges on the HELOC. It would not be fair otherwise. You are canceling a great deal of interest on the HELOC by depositing your income into it. The software only calls for transfers to principal as the HELOC nears a $0 balance
- I can do this myself:
A: Yes, you can. Go right ahead & do that.. Are you putting every penny of discretionary income towards principal reduction? If so, God Bless you. You don't need the product. However, the rest of us have life to deal with expense wise. If you have enough savings aside to deal with life's issues & you don't need your discretionary income then don't buy it.
- If I invested my discretionary income I would make more
A: Possibly, no probably. However, are you putting all of your discretionary income into compounding investments? If so, GREAT! However, the remaining 99% of us may as well service debt as efficiently as possible. If I ate perfect food & worked out non stop my body would be in terrific shape & I wouldn't need a gym membership or to take my vitamins.

There is plenty more... Listen this is a simple concept & by no means is this magic. Either you can poke a hole in it or you can't. Math is absolute. Fact of the matter is people bashing it are often doing so w/out fully researching or understanding it. The really scary part is "so-called" experts with fancy acronyms like PHD & DR are jumping on the bandwagon w/out doing their homework. I'm just glad I finally did

Best wishes,
rich

Bob, you must be a salesperson for the company. If the founders of the company wanted to just "help people" why are they profiting off it? Give me a break. In your third point you offer a weak rationalization to "cost justify" the $3,500 cost. I'm guessing your cut is around 50%. Am I right?

The only objection is price as far as I can tell. So, some how I got screwed by paying $3,500? Actually, I would have been screwed by the bank, had I paid the $775,000 in interest I would have paid over an additional 20 years.

All the cheapskates here are paying a lot more then me.

I'll be one of the few smart ones, laughing my way to the bank!

I would have paid $75,000. It may be MLM, yet I was never asked to sell it.

I got it from: www.MMAMortgageSoftware.com

Good luck,
Tom

Here's a better idea than paying $3500, which if applied directly to the mortgage instead would take off over a year, go to google, type in mortgage reduction software, download one of the FREE or cheaper priced programs (that you can own instead of having to go to a website everytime) then buy the book rapid debt reduction strategies by John Avanzini, which it seems to me is the blueprint for the MMA software, or probably any other book that explains how to use a HELOC for debt reduction, use them together, that's ALL you need....

Well - after reading all of these comments, it's become painfully clear to me that a lot of people like to shoot off their mouth about things they know nothing at all about! It is blatantly clear that not ONE of you naysayers has EVER sat thru a complete presentation by a true registered MMA Agent! Firstly - this company is NOT a MLM! Unless you want to call Insurance Agencys' or Realtor Offices MLM's too! The company is set up and structured just like them. And all this crying about this "Awful" charge ... Let me ask YOU ... Did your Realtor NOT charge you anything when you bought your house??? Did you NOT pay any closing costs??? Oh - and by the way ... WHICH one of them saved you a SINGLE MONTH in PAYMENTS??? I know you won't answer honestly, so I'll answer FOR you ... NOT ONE OF THEM DID YOU ANY FAVORS!!! And THAT'S the TRUTH!
I can't believe all the belly-achin about the cost. Seems to me that this is America, the land of free commerce. Some of us work hard, study hard, come up with brilliant new ways of helping others, and what do SOME "brilliant" people do??? Well, they think that after someone has spent Millions of their own hard-earned dollars on the development of something for over 2 1/2 years, I guess that they should just GIVE it away for free to anyone that wants it, right? Even though it has been proven over and over (check out the BBB on that company)!!! I DARE you to find other companies with such a clean sheet! If it is such a scam, then the BBB files should be "crammed" with complaints on United First Financial ... RIGHT?!? Or do you empty-headed bigots think that the thousands of clients are just SO stupid, that they can't contact the BBB to complain?!?
I admit that some things I have to look at two - sometimes three times to understand things that seem "too good to be true", just as I spent the last 6 weeks pouring over documents, scenerials (sp?), and talking to 3 local bank managers, the partners of a large Real Estate Brokerage Co., a CPA who came straight out of the IRS in Covington, KY after 14 years there in Sr. Mgmt and now is VERY successful with a large clientel base, along with some Ministers (yes - this program works for churches too!) But when you get to the mortgages on buildings of that size, the interest savings gets into the $500,000 and up figures SAVED! On paper! AND something everyone conviently leaves out ... THAT AWFUL $3,500.00 is covered by a written guarentee! IF your savings don't do as well as your written guarentee - You are refunded ... Guess how much?!? $3,500.00!!!!!!!! SO! If it REALLY is as bad as you know-nothings claim, well then, you're not OUT A DIME!!! Why haven't any of you "cried" about THAT?!?
You know - I have been "looking" into this as I mentioned earlier. I didn't have any dog in this fight, but now I am HOT! And I guess that I owe you, the self-blinded ones, a big Thank-YOU! Because by my reading all of this blithering nonsense, and knowing what I know about the FACTS! NOT HERESAY!!! You have made me come to a decision that really wasn't on my viewfinder. Just now ... Tonight! I have come to the realization that I now want to join this force! I want to help stamp out igornance wherever it hides!
You people remind me of so much that is wrong with this country!
I trully wish that you would know of whence you speak!
But - before I depart, I wish to ask for your forgiveness. I was wrong in calling people that I don't know by any untoward name or certain classification. I don't do that in person, and I'm sorry that I did it now. So I leave you with a true, "I'm Sorry". But I WILL pray that each and every one of you will consider the words that you utter, and please know that of which you speak - before you attempt to defame or cast false accusations unfairly. May God Bless All of YOU, and May God Bless America! Goodnight!

I just recently watched the DVD on the MMA by First Financial. I was still very confused on how exactly they are going to save me money with out changing my mortgage payment or my lifestyle. The figures just didn't add up. See I am the type of person that likes to see the facts and the figures and so far I have not seen that from anyone.
I then went online to do a little more research, to see if I could find some real concrete evidence that this program works with out any catches. I found these postings to be irrelevant for the most part. Nearly everyone that was for this program appears to be an agent for it! Yet not a one of them can give me clear concrete numbers on how this is going to work. $3500 dollars is rediculous for any software program that is not running a fairly large business let alone residential. This is just a fee that someone thought up in a conference room with a bunch of other rich guys.
Hey I have a timeshare I'd like to sell everyone for $20,000, its a great investment! At least that is what everyone tells you till you try to sell it for $5,000 5 years later and can't even get a buyer.
I'm just saying, someone please give me some hard credible evidence of how this program works or send me to a site that I can look for myself.

Mike T.

Mike, you say that everyone promoting this program here seems to be an agent. Think about this. What I have seen is that people who start as a client, they cannot help but talk about it to others as they see what they are saving. Why not get compensated for it if they are going to buy it.

In my case, I became an agent first, back in October. I am in the process of purchasing a new home which I will be closing on on January 15th. Now, since discovering this program, I cannot wait to get on the MMA program. I am purchasing a $200,000 house at an interest rate of 6%. I have approximately $200 to $400 of discretionary income each month. With this in mind, I will have both my primary mortgage AND my HELOC and ALL of my other debts paid in full within 8.3 years... guaranteed, or my money back. I will be doing this WITHOUT changing my monthly budget! In the end, my effective interest rate on ALL of my debts including the 1st mortgage and my HELOC will be 1.693%. I don't think ANY bank would be willing to give me an interest rate that good! What do you think? What is an effective interest rate? It is the same as your 21% credit card. When you pay your balance off in full the same month you charged it, your effective interest rate is 0%.

If you REALLY want to see and understand the numbers that make the software work, ask an agent to get you on a webinar hosted by Lynn Spencer. He does a fantastic job at explaining the program in detail or do a search for Designing Futures. You should find it.

In my personal case, I will be saving $168,294 on my 30-year loan and it will be paid for in less than 8.3. I would love to trade the bank's $3,500 anyday if it will save me $168,294!

Of course, there are some other programs out too, but there are some clear benefits to the MMA program which is why I am going that route.

There is another company that does the same thing and more. Not only do they eliminate your mortgage but they do ALL of your debt. Car loans, student loans, credit card debt, credit restoration, investment coaching, and tax strategies. They only charge $500... You can go to their website and do a sample analysis using your own info for free just to get an idea of how much you can save. The site I found was www.damon.uwinfinancial.com

The video I just saw about this program supposes that I have $5000 income with $4000 budget. Normally, that extra $1000 sits around in the checking account accruing $0 interest and gets spent on something "discretionary" like a vacation. However, this program prompts you to pay the principal on the mortgage with it instead. I guess I can do that, but who's to say that I won't use it for a vacation leaving $0 for my discretionary spending?

I see this as just a tool, a very expensive tool. I think knowledge alone is enough. You can get the fanciest tool that will tell you to do something every step of the way, but if you choose not to do it then it won't work. Kinda like fad-exercise equipments or diets eh?

If you think you will MAGICALLY make your principal on your mortgage disappear without paying for it with your "discretionary $$$", you are absolutely wrong! It will require discipline and sacrifice, both severely lacking in an average American Home Owner... Besides, who has $1000 extra to spend every month???

Thanks Tony for seeing it like it really is.

i just recently made settlement on my first home. i work with three gentlemen who all use the mma software. they are also all agents who can sell this product. i did a little bit of research on mortgage amortization and time value of money calculators(i had one finance class in college about 15 years ago). this is all very simple cut and dry stuff. i ran my mortgage amount and interest rate with an upfront payment of 3500 dollars(cost of the software) and 300 dollars(this 300 dollars is completely arbitrary) every month to pay off the principal. i could pay off my mortgage in 13.5 years. one of the guys at work ran my numbers through the mma and came up with my mortgage being paid off in under 12 years. that is all well and good until i discovered the scam. i am payed bi-weekly. this mma agent ran my monthly income at only two paychecks per month. now i receive 26 paychecks a year, not 24. without telling me, he applied the other two paychecks to my mortgage principal. when i noticed this i pointed it out to him and had him correct my monthly income. he reran the numbers and the mma had me paying off my mortgage in 14.3 years. i wonder how many people did not catch this little slight of hand and purchased this very shady piece of software.

now i used 300 dollars as discretionary income, it could be any amount. the end result would be the same time ratio of 13.5/14.3

now if i don't pay 3500(the cost of the software) up front on my mortgage, but i still apply 300 dollars every month to the principal i wind up paying my mortgage off in 14.17 years. still less time than if i use the mma program.

this just proves to me that the mma is just smoke, mirrors, and slight of hand. it has all the earmarks of a scam.

another thing these agents like to mention is how approximately 1/3 of all australians have this type of mortgage. a childhood friend of mine married an aussie and lives in sydney, they have never heard of it. an australian friend of mine who now lives here in the states has never heard of it. after a little bit of research i discovered that the australian securities and investments commission shut down about a hundred web sites in 2003 that all made claims about paying off your mortgage in half the time using a home equity line of credit. the reason being was their presentation was misleading and misrepresented what the product really was, a glorified budgeting aid.

the mma makes you focus on one thing, interest paid on your mortgage. they make it seem outrageous that you are paying more money in interest over 30 years than what the loan amount is for. if you have discretionary income to pay on your mortgage, don't do it. using a time value of money calculator at a not too unreasonable rate of return of 8.5%, i invest 3500 dollars(cost of the mma software) and then add 300 dollars every month, i will have just about 540,000 dollars after 30 years. now with my mortgage i will pay about 140,000 dollars in interest after 30 years. i am still ahead by 400,000 dollars after 30 years. drumroll please....... the mma is a scam.

if you know someone who sells this thing, have them run your mortgage numbers using a discretionary income of zero dollars. this should show at least a little bit of savings due to their "million dollar algorithm" that floats your bills through a line of credit, the answer is that it can't. because what drives paying off your mortgage in half the time is throwing money at the principal. it always has been, it always will be.

finally, in my experience most mma agents are not financial professionals. i am pretty positive that the cost of a financial planner to help you make and keep a budget is way less than the cost of the mma.

warmest regards,
greg p

Greg P

I understand what you are saying but be fair. If you are going to compare investing $3,500 with a monthly addition of $300 having a difference of 400k after 30 years you need to do the math correctly. Compare your 540K nest egg with a nest egg of 16 years invested at 8.5% with monthly amounts of your mortgage payment plus $300.

I just read this thread and haven't done the math myself. I am just pointing out that your 400K difference isn't a fair representation. You still may make out ahead.

Mike P

I've heard of MMA, and I am a mortgage professional. I think the main turn off of MMA (mixed martial arts right?? haha) was the price point: $3,500.

When reading through the top explanation, I found that the writer simply doesn't understand the math. Even though he say's "do the math".

We all know interest on any type of debt is what kills the debtor (even if it is manageable debt); and the bank is playing for the long pay off because that is how they make tons of money.

If you are using the banks own money (LOC) to pay off the larger balances you owe to the bank, in order to lessen the effects of interest paid over the life of any debt, then you are being very smart. The problem is, many people don't understand how interest is accrued, or the best times to make payments to make toward their debts, or how much those payment should be exactly. (This is where the software is a lifesaver).

For instance: Did you know that your current car loan could be paid off in less time making the same payments, if you were to make the per diem payment every day instead of paying a lump sum payment at the end of the month? If you didn't know that, then you shouldn't be consulting people on how to pay off debt in the shortest amount of time.

Now with that said: the company I'm joining forces with www.uwinfinancials.com only charges 500 for the software and 100 a month to use the software until the client is where they want to be financially. I think it is a good service, because it wraps in credit repair with Lexington Law, debt elimination, tax deduction advice, and investment planning.

Also for us mortgage professionals, the software will flag us when clients who are unable to get financing because of bad credit or DTI, are ready for a loan (talk about a lead generator!!).

So we mortgage professionals now have a way to qualify more people and get the people who don't qualify the help they need to get set free from debt. What do you do now with your turndowns? Exactly! Nothing...maybe a mailer. Now you can actually make a commission: Uwin pays you $200 for each referral and a small residual income as they continue to use the software. This is a no-brainer during this economic climate. Huge Market. Great Product. Make a side business that is totally symbiotic with your loan business.

I appreciate all the comments and the discussion surrounding this topic. As intended, I hope I've prompted those who are considering the program to just do the math for yourself. Although there may be instances where this program is beneficial, there are probably more (you know my opinion) where it is not.

OK- so here's my question that can settle all of the back and forth if someone here (preferably an agent of MMAs)

Is is possible for you to open an MMA account for someone, and with the software track the interest paid on their primary mortgage AND their new equity line?

Next, When that person's primary mortgage balance is lowered by $3500 (cost of the software) + the additional amount of interest paid on the equity line to make this program work, (theoretically the break-even point) ask the person for a check for $3500 to then pay for the cost of the software, to continue to save, which would be at this point all upside, or cancel their program??

So put simply if: the 1st mortgage is currently paying $100 towards decreasing principal, and that is accelerated with an MMA to $1000 per month, however the equity line interest is $200 per month then theoretically (1000-200=800) after the 4th month I should have $3500 net gain from which I can write a check from my MMA account to pay for the software.

I think if this were possible everyone would do this and there would be no doubt in the numbers

I went through the entire presentation with an agent and was thoroughly impressed. Afterwards, I started thinking about all of the information he just crammed into my brain. Here's how it works;

My loan balance is $160k. It will take me 18 months to pay that down to $156k. 18 months of payments equals, let's say $16k in interest, $4k in principal to pay down that $4k. Easy enough.

Now, let's say that you open a HELOC, instantly charge $4k and put that towards your mortgage. Your mortgage is now at $156k, you've skipped 18 months of payments, $16k in interest, and now that you've skipped 18 payments, your principal payment on the loan has also jumped up. Check out your amortization chart.

Now for the interest on the HELOC; Every bill is paid with a credit card. EVERY BILL except for your mortgage. So, you have $4k to pay. You have $400 in discretionary income each month. Your paychecks are $500 each week. First week, your balance drops to $3500 after first paycheck, $3k after second, $2500 after third, $2000 after fourth. Your interest is calculated daily, so your average for the month is $3k. Let's imagine you have a 12% interest rate on the HELOC (way high!). What's your interest for that month? $30. Now, those bills you paid with the credit card are paid off with the HELOC, therefore, no interest on the credit card. Your balance of $2k hops back up to $3600 (because you have $400 discretionary income out of the $2k in paychecks, and only $1600 towards bills.)

So, your balance is lowered by $400 that month. At that rate, how long will it take to pay off that HELOC? 10 months. How much interest each month? $30 or less. 10 months times $30 in interest equals $300 total interst.

You just paid $300 in interest charges on your HELOC to pay off 18 months of payments, which is $16k in interest if you would have paid those house payments. Also, the amount of your mortgage payment going towards principal is higher.

When that HELOC balance gets near zero, you put another $4k (depends on person) towards principal.

Do this over and over. That's how it's done.

FOR THE UNINFORMED, THE MMA PROGRAM WAS AWARDED THE #1 FINANCIAL SERVICES AWARD BY ERNST & YOUNG. I GUESS YOU KNOW MORE THEN THEY DO. U1ST WAS NAMED 2008 ENTREPRENEUR WINNER. A ONE TIME LIFETIME COST OF $3,500.00 TO SAVE THOUSANDS OF DOLLARS AND GET YOUR FINANCIAL LIFE ON TRACK. WELL, THE BIG BOYS THINK SO, WHAT DO THEY KNOW THAT YOU DON'T. GO TOO WWW.MMAPROGRAM.COM FOR MORE INFORMATION

I have done quite a bit of research on the Ufirst product. While the example you used was put together by a very intelligent person there is a problem. They do not have access to all the facts. There are quite a few assumptions and even more mistakes listed. The example does not replicate in any way how the Ufirst product works. I am finding there is quite a bit of false information out there. Some even from Agents.
The Program does work. It can be effectively used to eliminate interest. Will it shave everyone's mortgage to 8 years? No.
Unfortunately, some of the Agents trying to answer questions just don't know enough about how the product works. That is unfortunate and bad business too.
On the other side of the coin people who are going to describe how it works should do enough research to know that they have all the facts. That goes for quoting bad information for an article also.
As adults we should show more responsibility.

Having followed a whole year of discussion on this topic, we need to get down to the 'nitty-gritty'.
Q - "Does making prepayments of principal on your mortgage save interest & reduce the term?"
A - "Yes - It does!"
Q - "Is a $3,500 computer program essential to get those benefits?"
A - "No, it isn't!"
Q - "Is there a watertight guarantee that the U1st website will be around for the next 5, 10 15 years?"
A - "No - there isn't!"
Q - "What would I do if the 'disappeared?"
A - You'd be on your own!"
Q - Are there programs available for MUCH less money that I could use either on my own computer (i.e. NOT on-line) or without a computer at all?"
A - "Yes there are."
Q - "How much do they cost?"
A - "From $300 - depending on how much 'tuition' and 'support' you need."
Q - "Where do I find info on these alternative programs?"
A - "There are plenty of websites to look at or email me. I'll be happy to get you started."
Q - "Are the 'benefits' of these other systems as good as U1st/MMA?"
A - "The financial saving of interest etc can be similar, but you don't get all the 'visuals' and online support."
My suggestion? Do your homework - find a program that suits your abilities and budget and 'Get Weaving!'
No matter what the 'naysayers' write on this website and elsewhere, if you set up a program, and stick with it, you will indeed SAVE THOUSANDS!

OK - has anyone really figured out what is happening here? Let's assume that you do get the HELOC loan or any line of credit for 50% value of your home. That would mean you now have access to $50,000 or more. HMM - ask yourself - what would I do with that extra money? You would not consider it to be debt. You would consider it to be your money. So, why not buy that new car, boat, motorcycle, toy, clothes, dinner on the town, those season tickets that you couldn't afford and so on? Your process of thought becomes, I won't have to pay the interest because it is spread over a long period of time?

MMA = Consumerism. The average person who is having difficulties paying bills will assume that this is a good deal. They can, once again, afford the things they want. You thought the real estate market is bad now. Just wait another year when the consumer can't pay off the double debt they created with a HELOC loan.

For twenty years I’ve been originating Government loans and have always told people to pay extra on their home mortgage. Doing this would save them thousands of dollars in interest. “Just making one extra payment per year will take 7 to 8 years off the term of your loan”. After twenty years and thousands of customers, I’ve never met ONE customer that ever did this on a consistent basis. What stops them from doing such an easy task? Before I answer this question let me tell you about myself. I’ve owned a mortgage company for 16 years. I've dealt with first time homeowners and people in their late 80’s looking for additional income through a Reverse mortgage. I hear peoples' life stories every day. The last two years have been the worst years in the mortgage industry since the 18% interest in the 1980’s. I am proud to say, my company DOES NOT HAVE ONE LOAN IN FORECLOSURE!!! NOT ONE HOME OWNER HAS BEEN LATE ON THEIR MORTGAGE! Now let me tell you why people never pay extra on their home loan. My friends, LIFE HAPPENS, the kids need this, my spouse wants that, vacation, new flat screen TV, LIFE IN GENERAL. If I pay extra, that money has just come right out of my pocket!

That having been said, I would like to ask you a question: What is your equity doing for you? What is your equity doing?!! Your equity is sitting there waiting for you to sell your home so you can put it into your next house, or you’re using it to pay off consumer debt. I put my equity to WORK, by using the MMA program. Did you know that 99% of homeowners’ know that they can pay extra toward their mortgage? Did you know only 1% of homeowners will ever do this? Maybe you can pay extra on your mortgage sometimes. That’s great! Congratulations! But most people need help and that’s what the MMA Program offers homeowners. It's an easy way to use your equity to payoff an amortized loan.

On January 1st of a New Year most people will say " I’d like to lose a few pounds”, so they join the YMCA and start working out. This may last a week or so then they stop. Others may hire a personal trainer and stay with a workout routine to reach their goal. MMA program is a personal trainer to help you payoff your largest debt, which is your mortgage! The program tells you the exact amount to pay and when to pay it. You actually skip years off your loan. Can you do this on your own? YES!!! But will you? In 24 months under the MMA program I’ve moved up 106 house payments on my amortization schedule. That’s a saving of $295,210.00 in house payments I will never have to pay. Could I have done this on my own? Maybe. Would I? Statistics say, no. The bottom line is the program pays for itself in the payments I no longer have to make.

Paying off your mortgage should be one of your top priorities. Paying off your home loan will change your life. It will change your retirement. For me, in six years with MMA I will do just that! With the MMA program I know what date I will accomplish this task. When I made my 11/01/2008 house payment I knew that payment was being applied as my 09/01/2017 payment on my amortization schedule. I moved up 9 years on my amortization schedule.

I don't know why you feel so negative about the MMA program. What I do know is that its right for me. This program just helps people to become mortgage free much faster. Take this challenge for six months and try to do this on your own. Be honest with yourself. See if life get’s in your way.

With the MMA program it’s never been easier to payoff your mortgage…… You have nothing to lose but the interest you pay on your mortgage.

Brad Farris

President of Farris Mortgage

It is quite simple to make money in order to pay your debts, but in order to pay your debts you will need a loan and a very good amortization schedule. This is how to do it: you search for a good land that can increase its price quite a lot over a year. Then you make a loan in order to buy that land or at least a part of it. You pay your rates one year and then resell the land at a higher price. You pay the bank and paying it faster will decrease the amount of interest. This way you pay your loan and make a profit by selling that land.