January 19, 2008
Money Merge Account: Scam-a-licious
I think I wasn't really clear in yesterday's discussion of the pros and cons of United First Financial's (UFF) Money Merge Account (MMA).
Pro
The pro is that if you stick to the suggestions the software makes, you can save lots of money on your mortgage and pay off your home years sooner.
Con
The program is expensive, coming in at $3500.00. They finance that for you (essentially adding it to the mortgage amount you have to pay (through your home equity line of credit), so they do sort of a disappearing act on the price. In other words, since they're financing it, it doesn't really exist, right? (er, uh, we think that's wrong)
Pro
The MMA software makes suggestions.
Con
The money merge account does not do it for you. If you don't follow the suggestions, you could really screw yourself up.
Pro
Get one of the many alternative programs available for under $100. Read more about the basic premise of using a home equity line of credit (HELOC) to pay off your home years sooner.
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6 Comments on Money Merge Account: Scam-a-licious »
January 19, 2008
Money Merge Account: Scam-a-licious | Equity Line Of Credit @ 1:29 pm (Pingback)
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March 30, 2008
Big Joe @ 12:11 pm:
MMA is a great thing I have saved money and budget better in just two months. I love this. If you don't do it you are simply not getting it. If you buy a program for 100 you will get a 100 dollar product.
The Great Mortgage Revolt @ 12:23 pm:
Re: Big Joe "If you buy a program for 100 you will get a 100 dollar product."
And if you buy a program for $3500, you still get a $100 program.
June 6, 2008
Saltzzzz @ 11:46 am:
"If you buy a program for $3500, you still get a $100 program", not correct. So if I buy a gym membership for $500, and pay an extra $500 for a personal trainer, am I going to get the same results without the personal trainer? No. Not to mention there are MANY different types of personal trainers out there. Which leads me to believe quality DOES matter.
I have been using the MMA software now for almost 2 years. I LOVE it! It keeps me in check and in line with my spending. I think it is very important for people considering buying the program to understand that it's not a miraculous program that will wash your windows too. It does take self control as well as the desire to want to pay off the home.
What's amazing to me as well is I when I google "MMA scams", of all the negative feedback, not one source of feedback that is negative comes from an actual user of the program. Hmmmmm, go figure. A bunch of know-it-alls is what I'm thinking.
August 21, 2008
JimmyDaGeek @ 11:32 am:
MMA is a great product for the financially undisciplined, mathematically illiterate and intellectually lazy. It will do exactly what it advertises, but will cost you at least $10,000 more in the long run over doing it yourself. If you find it worth that much money for a "personal coach", that's your deal.
There is no magic in "interest cancellation", "interest float", "interest accumulation", etc. MMA does not create money out of nothing. Every extra dollar you send to your mortgage is a prepayment from your "discretionary income".
I have never seen the program. But I don't need to see it to know there is no magic algorithm that beats simply sending your extra cash each month to pay down your mortgage. You will need to open a HELOC as a backup. If you have to borrow from the HELOC, it will be the first thing you pay off.
Although I use spreadsheets to model the cash flows of payoffs, all you need is your mortgage statement, mortgage amortization table and a sheet of paper to do it yourself.
The Great Mortgage Revolt @ 3:34 pm:
Hey Jimmy! Great to have you visit again. You are absolutely right that "Every extra dollar you send to your mortgage is a prepayment from your 'discretionary income.'"
Even using HELOC cycling to increase the velocity of money paying down the mortgage, what allows that to work is the income left over after expenses are paid, what many call "discretionary income."