Submitted by Anonymous (not verified) on Sun, 2007-11-18 01:52.
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.
Steve, that's not how it works....
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.