Comments on: Pay Off Your Mortgage In Half the Time? http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/ Survive the Tough Times, Get Out of Debt and Save Money Mon, 01 Mar 2010 23:23:28 -0400 http://wordpress.org/?v=2.8.6 hourly 1 By: -> Money Hacks Carnival #2 is up at beingfrugal.net | Bible Money Matters http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-12137 -> Money Hacks Carnival #2 is up at beingfrugal.net | Bible Money Matters Sat, 08 Aug 2009 15:46:52 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-12137 [...] A way to pay off your mortgage early at Oh My Aching [...] [...] A way to pay off your mortgage early at Oh My Aching [...]

]]> By: JimmyDaGeek http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-11029 JimmyDaGeek Fri, 03 Jul 2009 16:34:53 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-11029 “Using the banks money” – We started out by taking out a loan called a mortgage, using the bank’s money. Now that it’s time to pay the loan back, we need to get the money from somewhere. Usually, it comes out of our paycheck. But MMA claims that if we use a HELOC, we are not using our money anymore, we are using the bank’s money. But, wait, we started all this by using the bank’s money to take out a mortgage and now we have to pay it back. So that means if we use the bank’s money by taking a loan out of the HELOC, we have to pay that back, too. So all we did was postpone having to pay the bank back by using the HELOC money to pay the mortgage. We still have to pay the HELOC back. Where is that money going to come from? Out of our paycheck. So why should we spend $3500 on MMA to play a money shell game with a HELOC? “Interest cancellation” – MMA claims that by loading up the HELOC and running our paychecks through the HELOC, we reduce the balance so much that we save lots of money that way, and that alone is worth $3500. OK, so how much can we save? Well, let’s assume our mortgage rate is 6%. That means each month, we are charged 1/2% on our mortgage balance, the whole balance. But if we are using interest cancellation, the most that we can save is whatever our monthly salary is. So, if we bring home $5,000, the largest HELOC balance we can offset is $5,000. How much will that save? $5,000 times 1/2% is $25. That’s $25 per month or $300 per year. So MMA wants you to spend $3500 upfront to save $300 per year. Do you know how much interest you would save if you just put $3500 towards your 6% mortgage? OVER $16,000 and 16 months. (Not $4000 as I said in a different post) “Factorial math” – MMA claims no one except a computer can figure out the best possible way to pay all your bills and debts because of all the possible combinations. LIES. There is only one SIMPLE BEST way to pay off all your debts. You pay off the highest interest debt first and work your way down using a DEBT SNOWBALL. It only needs addition and subtraction. “Using the banks money” – We started out by taking out a loan called a mortgage, using the bank’s money. Now that it’s time to pay the loan back, we need to get the money from somewhere. Usually, it comes out of our paycheck. But MMA claims that if we use a HELOC, we are not using our money anymore, we are using the bank’s money. But, wait, we started all this by using the bank’s money to take out a mortgage and now we have to pay it back. So that means if we use the bank’s money by taking a loan out of the HELOC, we have to pay that back, too. So all we did was postpone having to pay the bank back by using the HELOC money to pay the mortgage. We still have to pay the HELOC back. Where is that money going to come from? Out of our paycheck. So why should we spend $3500 on MMA to play a money shell game with a HELOC?

“Interest cancellation” – MMA claims that by loading up the HELOC and running our paychecks through the HELOC, we reduce the balance so much that we save lots of money that way, and that alone is worth $3500. OK, so how much can we save? Well, let’s assume our mortgage rate is 6%. That means each month, we are charged 1/2% on our mortgage balance, the whole balance. But if we are using interest cancellation, the most that we can save is whatever our monthly salary is. So, if we bring home $5,000, the largest HELOC balance we can offset is $5,000. How much will that save? $5,000 times 1/2% is $25. That’s $25 per month or $300 per year. So MMA wants you to spend $3500 upfront to save $300 per year. Do you know how much interest you would save if you just put $3500 towards your 6% mortgage? OVER $16,000 and 16 months. (Not $4000 as I said in a different post)

“Factorial math” – MMA claims no one except a computer can figure out the best possible way to pay all your bills and debts because of all the possible combinations. LIES. There is only one SIMPLE BEST way to pay off all your debts. You pay off the highest interest debt first and work your way down using a DEBT SNOWBALL. It only needs addition and subtraction.

]]> By: joetaxpayer http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-1048 joetaxpayer Sat, 12 Jul 2008 00:46:10 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-1048 There is a site http://discovermoneymerge.com/dv/example which offers an example using money merge. Funny thing, by just paying down principle at the end of each month, a mortgage will amortize a bit faster, given that the UFF example starts with $3500 more to pay off. The use of HELOC saves nothing at all even in this website example trying to promote the product. I do understand the numbers perfectly, even how 'in theory' the HELOC should help the matter a bit, but not nearly enough to make a large difference. Too bad people are so confused by numbers they want to believe anything. Joe There is a site http://discovermoneymerge.com/dv/example which offers an example using money merge. Funny thing, by just paying down principle at the end of each month, a mortgage will amortize a bit faster, given that the UFF example starts with $3500 more to pay off. The use of HELOC saves nothing at all even in this website example trying to promote the product. I do understand the numbers perfectly, even how ‘in theory’ the HELOC should help the matter a bit, but not nearly enough to make a large difference. Too bad people are so confused by numbers they want to believe anything.
Joe

]]> By: rob http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-644 rob Sat, 17 May 2008 11:57:55 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-644 i think the uff is a ripoff who in their right mind would borrow $5000 from their heloc to pay down their mortgage. In the demo the couple had $1000 discretionary income simple when the software prompts you to borrow a huge chunk just send the $1000 or less keep your heloc balance low!!! i think the uff is a ripoff who in their right mind would borrow $5000 from their heloc to pay down their mortgage. In the demo the couple had $1000 discretionary income simple when the software prompts you to borrow a huge chunk just send the $1000 or less keep your heloc balance low!!!

]]> By: Lee Matthews -- Financial Concepts West http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-128 Lee Matthews -- Financial Concepts West Thu, 27 Mar 2008 21:30:22 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-128 It is unfortunate that most of us were never taught to follow three essential principles: (1) Avoid paying interest whenever possible, (2) Use other people’s money whenever possible and (3) Find and use a financial system that will guide you, especially if you have the tendency to go off-track. The Money Merge Account™ software and the program’s counselors use these principles to keep each homeowner focused on their wealth accumulation goals. It is unfortunate that most of us were never taught to follow three essential principles: (1) Avoid paying interest whenever possible, (2) Use other people’s money whenever possible and (3) Find and use a financial system that will guide you, especially if you have the tendency to go off-track. The Money Merge Account™ software and the program’s counselors use these principles to keep each homeowner focused on their wealth accumulation goals.

]]> By: Angie http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-127 Angie Wed, 19 Mar 2008 17:44:08 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-127 I think the most important step is to be realistic in what you can and cannot do. I’ve seen so many first time home buyers jump into something they cannot afford only because they have big dreams. I think the most important step is to be realistic in what you can and cannot do. I’ve seen so many first time home buyers jump into something they cannot afford only because they have big dreams.

]]> By: Adam Smith http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-126 Adam Smith Thu, 13 Mar 2008 17:30:32 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-126 I understand the UFF system very well. I was responding to the claim of "paying your mortgage in half the time...without increasing your out-of-pocket payments". This is false. UFF tells you that you need to have extra income. However, many UFF salespeople have made the same false claims to which I was responding. I have personally had my own situation run by two UFF salespersons, and I showed them how I could perform the prepayments myself. In both cases, I finished paying off my mortgage faster and far cheaper than paying $3500 for the UFF system. Can people find extra money in their own budget to increase the payments to their mortgage. Sure, but that was not the issue. You can analyze your budget with any personal finance software or just a pencil and paper. No UFF salesperson can present any numeric proof that the UFF system, given all the same numbers, that improves upon pre-paying your mortgage yourself. The examples in the UFF marketing materials can easily be demonstrated to be non-optimal/more expensive. The numbers that were run for myself where easily disproved. The UFF reports that people have e-mailed me can easily be shown to be sub-optimal. Saying that UFF is a motivational tool is a weak argument. I'm only talking about the numbers. And the numbers say paying $3500 to purchase the UFF software is money not well spent. I understand the UFF system very well.

I was responding to the claim of “paying your mortgage in half the time…without increasing your out-of-pocket payments”.

This is false. UFF tells you that you need to have extra income. However, many UFF salespeople have made the same false claims to which I was responding.

I have personally had my own situation run by two UFF salespersons, and I showed them how I could perform the prepayments myself. In both cases, I finished paying off my mortgage faster and far cheaper than paying $3500 for the UFF system.

Can people find extra money in their own budget to increase the payments to their mortgage. Sure, but that was not the issue. You can analyze your budget with any personal finance software or just a pencil and paper.

No UFF salesperson can present any numeric proof that the UFF system, given all the same numbers, that improves upon pre-paying your mortgage yourself. The examples in the UFF marketing materials can easily be demonstrated to be non-optimal/more expensive. The numbers that were run for myself where easily disproved. The UFF reports that people have e-mailed me can easily be shown to be sub-optimal.

Saying that UFF is a motivational tool is a weak argument. I’m only talking about the numbers. And the numbers say paying $3500 to purchase the UFF software is money not well spent.

]]> By: Doug Hutchinson http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-120 Doug Hutchinson Thu, 13 Mar 2008 14:08:33 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-120 Adam Smith on March 10th, 2008 at 10:25 am This is absolutely false! While you might be able to arbitrage the HELOC intrest for a few extra bucks, the only way the UFF system/scam works is through prepaying your mortgage. The extra payments only come from your disposable income. UFF’s FAQs tell you: No disposable income, then the program is not for you. The HELOC arbitrage cannot generate anywhere near enough money to reduce your mortgage payoff time. You can do the same thing, for free. Not only that you will pay off your mortgage faster than if you use the UFF system. Don’t have the personal fortitude to do it? $3500 software is not the answer! Adam, it's clear that you do not understand how the UFF program works. You referenced one FAQ and basically that is true. If you have no disposible income, the prograsm won't work. In the real world, there are many, many ways to find disposable income within people's financial situation. If you have $5,000.00 in credit card debt, making $150.00 monthly payments, it may be possible to roll that debt into the HELOC. The patented, trade marked and proven software would then direct you to payoff the debt from the HELOC and would not prompt you to make a principal payment to your mortgage until the income you deposit into your HELOC (remember, the HELOC is an open-ended loan so you use it exactly like a checking account) has paid down the debt from the credit card. The net effect of that, as I see it, is that you have now freed up $150.00 which is now discretionary income. If you use your credit card to pay your living expenses throughout the month, and then pay off the credit card within the billing cycle, you are charged no interest. Plus, by doing that you have kept your HELOC balance as low as possible and that means you pay a minimum interst charge on the HELOC. I'm not an accountant, but I'm pretty sure (having had HELOC's), that since the loan is tied to your home, any interest is tax deductable. Last time I checked, credit card debt, car payments and similar debt is not tax deductible. I find it intersting, Adam, that of all the information available on the <a>United First Financial</a> you chose to reference one item that you clerarly did not understand. And apparently decided you could then make the blanket negative statements as though you were an "expert". I work with financial planners who have found exciting ways for clients to free up money that can be used as discretionary income. The only way to find out if this program would work for an individual is to have analysis run. Until you do that or have first hand knowldge of this program, you are really in the dark. Adam Smith on March 10th, 2008 at 10:25 am

This is absolutely false! While you might be able to arbitrage the HELOC intrest for a few extra bucks, the only way the UFF system/scam works is through prepaying your mortgage.

The extra payments only come from your disposable income. UFF’s FAQs tell you: No disposable income, then the program is not for you. The HELOC arbitrage cannot generate anywhere near enough money to reduce your mortgage payoff time.

You can do the same thing, for free. Not only that you will pay off your mortgage faster than if you use the UFF system.

Don’t have the personal fortitude to do it? $3500 software is not the answer!

Adam, it’s clear that you do not understand how the UFF program works. You referenced one FAQ and basically that is true. If you have no disposible income, the prograsm won’t work.

In the real world, there are many, many ways to find disposable income within people’s financial situation. If you have $5,000.00 in credit card debt, making $150.00 monthly payments, it may be possible to roll that debt into the HELOC.

The patented, trade marked and proven software would then direct you to payoff the debt from the HELOC and would not prompt you to make a principal payment to your mortgage until the income you deposit into your HELOC (remember, the HELOC is an open-ended loan so you use it exactly like a checking account) has paid down the debt from the credit card. The net effect of that, as I see it, is that you have now freed up $150.00 which is now discretionary income. If you use your credit card to pay your living expenses throughout the month, and then pay off the credit card within the billing cycle, you are charged no interest. Plus, by doing that you have kept your HELOC balance as low as possible and that means you pay a minimum interst charge on the HELOC.

I’m not an accountant, but I’m pretty sure (having had HELOC’s), that since the loan is tied to your home, any interest is tax deductable. Last time I checked, credit card debt, car payments and similar debt is not tax deductible.

I find it intersting, Adam, that of all the information available on the United First Financial you chose to reference one item that you clerarly did not understand. And apparently decided you could then make the blanket negative statements as though you were an “expert”.

I work with financial planners who have found exciting ways for clients to free up money that can be used as discretionary income. The only way to find out if this program would work for an individual is to have analysis run. Until you do that or have first hand knowldge of this program, you are really in the dark.

]]> By: U 1st http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-124 U 1st Mon, 10 Mar 2008 19:47:15 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-124 ive been using the MMA for almost a year now and so far things have been working great, no problems o_O ive been using the MMA for almost a year now and so far things have been working great, no problems o_O

]]> By: Adam Smith http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/comment-page-1/#comment-125 Adam Smith Mon, 10 Mar 2008 15:25:21 +0000 http://achingdebts.com/pay-off-your-mortgage-in-half-the-time/#comment-125 # "CindyS on March 8th, 2008 at 3:54 pm I agree that you could accomplish much the same thing with a HELOC and no software but there are not many people who have the discipline to actually do that on their own. What I find interesting about these is that you are paying down your mortgage in half the time without increasing your out of pocket payments. So you still pay the same amount every month and still pay off your mortgage in half the time." This is absolutely false! While you might be able to arbitrage the HELOC intrest for a few extra bucks, the only way the UFF system/scam works is through prepaying your mortgage. The extra payments only come from your disposable income. UFF's FAQs tell you: No disposable income, then the program is not for you. The HELOC arbitrage cannot generate anywhere near enough money to reduce your mortgage payoff time. You can do the same thing, for free. Not only that you will pay off your mortgage faster than if you use the UFF system. Don't have the personal fortitude to do it? $3500 software is not the answer! #
“CindyS on March 8th, 2008 at 3:54 pm

I agree that you could accomplish much the same thing with a HELOC and no software but there are not many people who have the discipline to actually do that on their own.

What I find interesting about these is that you are paying down your mortgage in half the time without increasing your out of pocket payments. So you still pay the same amount every month and still pay off your mortgage in half the time.”

This is absolutely false! While you might be able to arbitrage the HELOC intrest for a few extra bucks, the only way the UFF system/scam works is through prepaying your mortgage.

The extra payments only come from your disposable income. UFF’s FAQs tell you: No disposable income, then the program is not for you. The HELOC arbitrage cannot generate anywhere near enough money to reduce your mortgage payoff time.

You can do the same thing, for free. Not only that you will pay off your mortgage faster than if you use the UFF system.

Don’t have the personal fortitude to do it? $3500 software is not the answer!

]]>