Money Merge Accounts, and the like, are a relatively new loan program in the United States that is a good program.  However, it does not serve the vast majority of Americans very well and our research shows that it is another case of "buyers beware". 

So, where did this program come from?  The program originated in Australia and is also used widely in the UK.  At least one third of Australians use this type of program.  However, Australia's loan offerings are completely different.  In Australia, the 30 year fixed rate does not exist, they offer "fixed rate" loans that are similar to our 3 and 5 year Adjustable Rate Mortgages (ARMs).  Since Americans can utilize the 30 year fixed loan as a hedge against rising interest rates, especially now that we are in an inverted yield curve, they can utilize other mortgage strategies and be in a position to pay off their mortgage faster. 

Robert D. Ashby, a Certified Mortgage Planning Specialist and owner of Solid Rock Mortgage Corporation, has done a lot of research on this program before he decided to add the program to his business.  "After lengthy review of its benefits, we see that this program will benefit about 15% or so of Americans better than our other strategies," Mr. Ashby said.  "For that reason, we felt it was a worthwhile addition to our services.  We chose to add CMG's Home Ownership Accelerator."

Our research pointed out that there are a lot of companies out there using false and misleading information to make the product look a lot better than it is.  When we asked Mr. Ashby about the research, he added, "If you are interested in this product and think it may be the best thing for you, find someone who doesn't sell only that product.  People selling only one solution will generally not be working with your best interests in mind."

In fact, we found that companies and representatives selling this type of product only were misrepresenting "reality." They were using how amortization tables were in favor of banks and stating things like your fixed rate is not really a fixed rate because of this, claiming the rate was as high as 580%.  Also, they use one sided comparisons to prove their product is better, such as stating that the tax deductibility of the mortgage is a myth.

There are some good companies to be aware of out there that are trying to promote this product honestly.  United First Financial's main site and CMG's representatives are among the best in trying to provide facts, not merely fiction.  One of UFF's representatives had a non sanctioned website that provided misinformation, so don't rely on just one website if you are looking for more information on these products.

There are many more misrepresentations regarding this product, so the borrower needs to do their own research and see if it truly is in their best interests to be in this program.  We recommend using a mortgage professional that offers various loan programs that clearly possesses the skills and expertise in developing a plan that has your best interests in mind, not theirs.