Hey Keith,

 As ussual there are always two sides to the arguement.  What do you say to the investor who insists that the mortgage is still the cheapest money available?  Followed by the financial advisor who correctly states that any equity in a home is a zero return investment therefore you need to get the best rate on your mortgage (better yet if you listen to Ric Edelman's "Tale of Two Brothers" an interest only loan) and take the tax adjustment while beating the spread on a higher yield investment.

 As one of my clients states after I sent him a link to this blog.  "It all boils down to the value of time - the concepts used on the mortgage side hold true for investing as well.  And if you do this, you'll find that 6% (or closer to 4% if you consider that the interest is tax deductible) is cheap money when your earning 10% from investing the same amount of money you'd otherwise be throwing against your loan principal.  I would pay off my mortgage tomorrow if I thought I wasn't earning more investing it."

 Are these two separate sides to the same coin or does the Asher report show us an error in our math that even now after being revealed is unable to penetrate our conditioning?   

I've known about this for quite some time. I've been in all facets of the mortgage industry for several years. Unfortunately, things are not what they seem.

 Let me explain, even though you are saving money per month on your mortgage by refinancing into that lower rate. You have to take into account how far down you into your amortization. All of the interest is front loaded to the bank. The bank knows you are going to move or refinance, so it gets their money first. The remainder called the principle payment goes towards actually paying the loan.

The advertised rate is correct if you keep the loan for the entire term. This is because in the end years of the loan the principle payments become "front loaded". See at as an inverse relationship. If you your interest payment is high, your principle payment is loan. As it starts to "level off" it becomes equal. Then the principle payment is higher than the interest payment. The ingeniuity of this system is simple. Everyone refinances to save a couple hundred bucks a month, but they go backwards into the front loading and now they are paying all of that interest again until they can start making bites into the principle payment.

 I've read a couple replies about this information and I am appalled. This information is finally being made available and people react like it's a scam. Quite simply, it's telling you to overpay your 30 year mortgage into a 15 year term. The savings you will gain in comparison if you had stayed in the 30 year far outweight the additional money you pay towards principle. 500 percent better. 

This information is correct and accurate. The public has been misled for too long. You all owe it to your family and your kids to glean this information.

Now how does the MMA system work? It's brilliant. It front loads the principle payment. You borrow the initial principle payment so you can get down into the principle paying part of the scale quicker. Essentially your payment goes more towards the principle. Don't let anyone fool you. This makes sense. You are paying maybe 10-12 percent to save tens of thousands of dollars in interest just on that one transaction. You all need to get off your duffs and learn about this program because it does the work for you. Stop being sheep and throwing away your families money to the banks.

BTW: the biweekly program is a scam. The amortization charts are figured out. The bank does not apply the additional payment until the end of the month anyways. Yes you can add an additional payment and it will reduce your mortgage term, but if you have this kind of money why do you have a 30 year in the first place? Exactly. So this system allows you to glean the benefits of a 15-10 year mortgage while still paying 30 year payments. You would be a fool not to join.

If you have additional questions, email me at kingliness@gmail.com.

God Bless and spread this information to everyone you know.

That is the most ridiculous way ever to look at a home loan.   When you borrow money for a home, you are borrowing the entire loan balance, not the equity you have gained.  The equity (if no inflation and home values are flat) is only what you've paid in.

I'll tell you what, I'll let you take complete advantage of me.  You lend me $1 million dollars at 1% and a fixed equity payment of only 1 penny a month.   Do your "true interest" calculation and I will be paying you a fortune since I am paying about $830 every month and only gaining $.01 in equity.  

 Please please please email me soon to get this great deal.

I understand what Kieth is saying and maybe the terms he is using are not PC but, there is a lot of truth to what he is saying.

If you take out a mortgage for 150,000 dollars and pay interest of 6% fixed or variable (who cares), and at the end of the first you decide to refinance the mortgage to a different rate or say you hit the lottery and want to pay it off. The interest you paid in that first year is 8,949.89! Thats a lot of interest. Now lets look at the principal you paid 1,842.02. hmm who made out better you or the lender?? Now the don't quote me on this but I think you got hosed. Yes I understand that it is 6% of the 150,000 you borrowed but, I think that the banking industry gives teaser rates and other promotional benefits to try to get you to refinance.

Do they really care for their customers? Only if it benefits them. Do they offer programs like the MMA to help their customers? No, they want to refinance you to a lower payment or a lower rate as to keep you in debt so that you continue to owe them money.

I am not a finance major or mortgage specialist but I can tell you that I don't like what the banks and lending institutions are doing. People need to be educated about how their loan works instead of pushed through the process and out the door.

I am on the MMA program and I am an Agent that sells the MMA program, but there needs to be more programs out there to help the consumer to get out of debt and not get buried!!

and thats all I have to say about that

This is the Household finance and Conseco sales pitch.

 Dear Mr. Client,

"please do not pay attention to your note rate of 12% because we will use a bi weekly payment plan to get your effective rate down to 6.5%"

why is there no other information available on the asher institute?  where are they located, and why have they  not done anything since 2003?  i ran the formula on your example on texas instruments BAII Plus calculator, but i'm not getting the same result...can you clarify the correct numbers to input?   this information couldn't be coming at a better time...people have been ripped off from wall street on down to the banks for too long!

all for it. 

One of the best statements that was said in this string was "front loading principle".  In essence this is what is happening by using MMA.  If you borrow the money and have a staged payment plan that is rapid enought, the interest paid on the HELOC interest machine is less expensive than the gain that you realize from the principle reduciton on the interest machine that is tied to the first mortgage.  The two machines operate completely different and that is where the power of the software takes over for you. You can not achieve this to its most affective amount with out the software.  You need to know that too much paid to the HELOC will sink you interest wise and too little paid to the line will not float the boat to its maximum performance. 

It is important though to remember that the interest that is charged, is charged on the entire amount of the loan (let's face it, you have the money, you gave it to the seller of the home for it and the bank is paying interest to the fed to provide the money to you) and not just on the principle reduction in each payment.  That would be missleading.  That said though, the MMA is the most powerful way to drive down the balance.  It essentially takes the best course of action concerning the money one makes or keeps aside as discretionary income- why leave it in the bank for them to loan out?  Earlier in my life I moved 14 times in 11 years to beat the interest machine from eating away at my profits.  I had to buy right and move on swiftly leaving the next fella to pay the bank for the 30 years.  The beauty of MMA is the client can drive down the balance so swifly and stay in his home.  It is much easier on the funiture too!  

Keith is trying to make a $1500 commission for selling one expensive calculator that tells you to put all of your extra income into paying off your mortgage.

Please listen to Brett Reichel in the previous post, and get a financial planner if you are serious about building wealth.

So if I loan you 100,000.00 at 6% I really should only get a return of 6,000.00 this is a true 6% but if i carry this 6% over the next 30 years to you I will get a return of 130,000.00 not exact number but example

in reality what I think one is trying to explain is that 130,000.00 is in fact 130% return on 100,000.00 and to advoid this kind of lost just to have lower payments can be done by following the MMA program whish leads you to toss in few extra dollars when you have it to lower the amount of return on you initial loan...most people who make 2500.00 month do not have extra spending money and what extra money they do have is used towards do dads.... men love their toys.... I know I do..

and one way to do this is to open a heloc on your home equity and basically look at it as an overdrawn checking protection which has no fee if you pay it back within its required time.. so its dangerous cause if you dont maintain paying it back timely you not only knock down your interest some on your mortage you now accumalate interest on you Overdrawn checking credit... what a mess then....

so how does one go about doing this without paying the fee.. MMA shows you monthly according to your income when to use your overdrawn protection (home equity) and when to deposit back into it to advoid the fee..it also shows you that when you used your credit to pay on your mortage.. how much interest you just knocked off your mortage.... is this wise money game.. yes and no.. really depends on whose hands this extra credit is in cause alot people will want to see this overdrawn protection(Home Equity) as money for do dads... new car...motorbike... xmas gifts... and list goes on and before they realise it they are now paying credit cards, home mortage.. car loan.. and basically 2nd mortage all because they did not manage their money to pay the equity loan off at the right time .... so MMA only seems to work for those who don't "Detour" from its path... Do you have this discipline? also I been thinking what is the benefit of owning your home..

Benefits = 1. more cash flow 2. more peace of mind if your cash flow changes and theres more 3. save 100k in interest over next 30 yrs to use in other investments

Disbenefits= 1. Refinance later to have extra money at maybe higher % now that all your money is in your home 2. your home is paid for now your 100k less of cash so you make a loan elsewhere to carry this 100k in the money system game again....

Here again it all depends on how a person MANAGES their money to whether or not it will benefit.....

I see this topic is still going on.

In regards to the tax savings debate: okay give me 10 more dollars and I will give you 3 dollars back. I will do it all day long and so will the government.

In regards to the true interest debate: if you purchased a 200k car @ 6 percent how much interest do you pay? 12k. if you pay that amount for your house why is the repayment amount "slightly" higher if you're actually paying 6%?

In regards to needing extra money out of your house debate: It would make more sense to use a LOC instead of an amortized loan. Stay away refinances except in the most dire of circumstances. They keep you poor and your wife at work. You will never pay off your mortgage.

The mortgage is the highest monthly payment in most cases. It's considered an asset, but that's a misnomer because as you can now see appreciation isn't a true value. It's the value of money going down. Thank the Federal Reserve that the dollar is now worth 4c of what it was worth before they were created. Oh and just as a side not, they are not "Federal" at all. They are a privately owned corporation that is quietly taking over the world by controlling the creation of "money".

In regards to this is just a bi-weekly plan scam: As stated earlier, bi-weekly plans do not work unless the mortgage is a simple interest loan. Unfortunately, most loans are scheduled interest so the bank does not put extra money towards the loan until it's scheduled to do so. Result? Your principle stays the same except for the extra payment that the bi-weekly system creates.

In regards to the MMA is just an expensive calculator: It's a little more than that. It actually manages your budget to make sure you follow the system. Plus it uses an 18 page algorithm that decides how to save the most money possible. If it was as simple as putting "extra" money towards your mortgage that would be a stupid thing to promote. You can do that on your own. The MMA figures out how to pay the least amount of interest, how to float the most amount of bank money to pay off the principle, and how to cycle the money using three factors: your line of credit (HELOC or LOC), your first mortgage, and your paycheck. If you think it's a simple calculator please explain to me how I can make sure that the amount of money I pay towards my mortgage using my LOC is giving me the most savings possible. I'll wait.

Btw: I took the time to figure out if using "cave man" methods of simply using a spreadsheet and putting money towards your principle and borrowing against your LOC by "eyeballing it" was a better way to go. So I could save the 3k price tag this system requires. It's not even close by a long shot. MMA makes sense period.

In regards to the "I'm going to move soon debate": That's great that you're moving. Are you 100 percent sure? Probably not. Even if you are 100 percent sure you're going to pay off the principle faster giving you more equity for the same monthly payment when it comes time to sell. Oh. And when you get your new home you can use the MMA for that also. So yeah. If you have multiple properties? It's obviously a no-brainer. If you pay off a mortgage in 7-10 years with a 30 year payment. That frees up cash flow for each house while maximizing principle pay down. Even if you didn't have extra cash flow. 10 houses paid off later by your renters and then being sold is a cool million at least.

In regards to the Asher Institute debate: Who cares who they are. Look at the information it's obvious if you think about it. You're paying way more than you think you are. If you have realized how much you are paying hopefully you have been looking for another way: this is it. Jump on it.

In regards to the one size fits all debate: Since when did it not make sense to save money for a payment you're going to pay already? Everybody tends to use this debate to talk about having money stuck in the house. Interesting considering the national average is 5 years before you move or refinance. Not exactly being stuck in the house. Even if you decided to stay it makes more sense financially to take the money out not using amortization. Hopefully you stay under 75 percent LTV because your interest is going to be much lower.

Btw: Have you figured out how much you would have to gain in stocks to equal the "guaranteed" return on paying down principle? 12 percent. Show me a guaranteed 12 percent return and then this debate holds some water.

In regards to a "fixed" rate doesn't change: You're right it doesn't change. It's a fixed rate if you hold on to the mortgage for 30 years. National average indicates you won't and don't. Even if you did it makes sense to not pay thousands of dollars per month after about 7-10 years is up. Doesn't it? Your wife can come home from her job. You are being lead down the work for the rest of your life path. This is a chance for you to pay off what could be your highest payment and by paying nothing additional towards principle. Seem to good to be true? It's not. The mortgage plan you are currently on is just too bad to be true.

In closing the MMA makes sense. Period. Take the time to figure it out. Even if you don't like Keith, the Asher Institute's fuzzy number, or even me. Don't let your family suffer because of what you have been lead and taught to be true. The 30 year mortgage is not your friend. It's the worst possible thing to happen to you. If you can't afford at least a 15 year mortgage you shouldn't be in that current home. It costs too much for you. You pay about 25 percent more for about 400 percent faster principle pay down with a 15 year mortgage. The 30 year mortgage was originally created for the lowest of the low qualification wise. Now it's the standard.

Let me explain the cycle that almost always occurs. You can't afford the home so you get a 30 year mortgage. You have no money to put down so you pay PMI or you piggy back a mortgage. That's 100 percent LTV, zero equity to you. You stay in the house for let's say 7 years. But, the bank convinced you that your small 15k credit card makes more sense to be paid into the mortgage because it was at 15 percent and your house is now at 6 percent. Makes sense right? Nope because you were 4 years into paying off your mortgage. Your mortgage payment was 3 years away from actually doing some damage towards your principle. So now 3 years later, when 7 years is up, you decide to move to follow a job that is out of state. You pay about 3 percent in closing costs. (You can sell the house yourself, but 80 percent of the time the home owner has to use a realtor for a variety of reasons) So, you decide to get a new house and you have a little extra to spend because of your house's (appreciation? Not really it's the value of the dollar going down. Stuff still costs the same amount  just takes more dollars to buy it.) "appreciation" so you once again purchase it at 100 percent LTV forcing you into PMI (higher monthly payment towards the bank for giving you the loan, not tax deductible) or piggy backing. Now you're once again paying a high interest rate and are back to paying way too much toward the bank instead of towards principle (Thank amortization). Your wife is working 40 hours a week (It's 2007 that's way things are.) Your kids are being raised by? Latchkey, MTV, baby sitters..etc etc. Hence the gradual moral decline of America. Hopefully, you see this as your golden ticket out of this because when it comes to retirement age. You won't be able to following this plan, unless you're one of the 2 percent that is independently wealthy.

Btw: Just so you know. Roth IRAs and 401k's are all indexed to the market. So don't rely on those when everyone else is trying to sell their stocks for cash to retire. (Baby Boomer generation will likely bring stocks to their true value they are 1000 percent overvalued currently.)

God Bless You All,

C. 

Mr. Dittemore -

You shot yourself in the foot with what you said about car loans, and I quote:

"In regards to the true interest debate: if you purchased a 200k car @ 6 percent how much interest do you pay? 12k. if you pay that amount for your house why is the repayment amount "slightly" higher if you're actually paying 6%?"

????????????   Apparently, you've never bought a car and looked at the truth in lending disclosure?

With that one statement, you've eliminated any reason for anyone to read the rest of your comments about the boogeyman "fed", and/or the UN's "black helicopters" or "who shot JFK?" or whatever other conspiracies you are worried about. 

Check with your banker.  If you borrow $200,000 to borrow a car and pay 6% interest and interest only, you will pay $12,000 A YEAR in interest, JUST LIKE A HOUSE!!!!  Surprise, surprise. 

You're right 12k per YEAR.

My mistake. Look at the numbers regardless, but thank you for pointing that out to me.

C.

I think I have figured out the great MMA secret.

It's the commission schedule.

A friend of mine was recently solicited to become an agent for the MMA product/program.

To Sign up for the MMA program you have to outlay $3,500 as a consumer.

$1,000 for a software product, and $2,500 in commission fees to be divided up pyramid style between all the Agent levels.

"UNITED FIRST FINANCIAL PROGRESSIVE COMPENSATION" 

Branch Manager level (13 direct sales, and 22 from agents lower in the pyramid) $1,575

Director level (10 direct sales, and 16 from other agents) $1,350

Division Manager level (7 direct sales, and 11 from other agents) $1,237.50

District Manager level (4 direct sales, and 7 from other agents) $1,125

Senior Associate (2 direct sales, and 3 from other agents) $1,012.50

Associate $900 

Putting the $3,500 directly on your mortgage may be a better investment!!

It seems that almost anyone can qualify as an agent to sell this MMA program, but I'm guessing the real money is made as commission.

Buyer beware, do your research before signing up. 

Ah....

My friend (a Realtor) was told that consumers could recoup that $3,500 in 3 to 4 months!  Explain the math behind that one.  When she asked them what happens when a consumer does not have $3,500 to sign up, the answer was that they could use their HELOC!  Considering that this is a program for people with extra disposable income, gullible people can end up starting off with $3,500 less equity in their property (essentially a $3,500 larger mortgage!).

She was told that this program was perfect for Loan Officers and Realtors to act as agents in order to make extra income in this slow market.

A lot of people have been burned by unscrupulous loan officers in recent times, and now these desperate people are now willing to try these risky schemes.  I personally know one person who signed up for this program and has been convinced to pay down her mortgage. She has a high interest HELOC (9%) and a high interest car loan!  She has a very sick feeling in the pit of her stomach right now, but of course the rational is, "oh well, it could have been worse, it's only $3,500". 

It is possible to gain the benifits of paying less interest withot paying $3,500 for software.

Macquarie Asset Manager www.macquariemortgages.com

Macquarie is pretty solid. However paying the refinance cost doesn't work sometimes and some people have really good interest rates right now. Plus, the consumer tends to move pretty often so it doesn't make much sense. It makes more sense to pay the 3500 one time for all of your mortgages for life. So if you move you can continue to accelerate your mortgage(s).

I'm not advertising anything. I don't care if you buy the product. I don't have any financial reward to giving you this informaton.

The sad fact is most of you have no idea what you are talking about and it's costing you a lot of money. You are repeating the same things, but hey it's your life. Pay mortgages until you are 90 years old. Good luck.

I'm sure the blogger, "Keith" will help you if you decide to get the program. If you ask him nicely he may be able to direct you to channel 4 Las Vegas money saver's. They did a newscast on the mortgage acceleration product and how effective it was. Hopefully, mainstream media will pick it up and broadcast it more often.

Btw: The last person I did an analysis for is going to pay off his 30 year mortgage (that he financed 6 months ago) in 4.8 years still paying the same payment because of his discretionary income level. So put that in your pay debt off pipe and smoke it.

I've never heard of anyone taking out a mortgage to invest. I have heard of people paying interest only and investing the difference.

C.

Kathleen,

Unfortunately, you do not understand the program.

"I understand that and I certainly agree with you.  It was really meant as a rhetorical question.  With the MMA program the emphasis is on discretionary money paying down the mortgage.  Well, either you have a lot of discretionary money and want to do that or you don't have the discretionary money and so you won't end up paying it off early or you have the discretionary money and would prefer to put it to better use such as you suggest."

The discretionary income is floated. You never use it. That's the genius of the program. It is not as simple as paying discretionary income towards the mortgage. You can do that without the program.

Tchaka,

That is a very good idea to borrow at 6.5 percent and return 10 percent. Especially considering it's tax deductible. That's how it appears. However you do not have a 6.5% interest rate unless you hold the mortgage (don't sell the place or refinance) for the entire 30 (term) years which almost never happens.

For instance. 30 yr 200k mortgage @ 6% is about 1200/mo. The break down of this 1200/mo is about 1000 dollars goes to the bank for interest and 200 dollars goes to your loan. The next month it becomes 999 dollars to the bank 201 dollars to your loan. Next month 998 dollars to your bank 202 dollars to your loan. Next month it is now 997 dollars to the bank 203 dollars to the loan. 

Here is an illustration: 30 yr 200k @ 6% = 1999.10

       Money goes to the bank (Interest)                            Money goes to your loan (Principle)

So at the end of a year. You've paid in total mortgages 14,389.20. Your return? 2456.01 which means you still owe 197,543.99 at the end of the year. So you've paid about 14,000 dollars to return about 2,000.

Many of you are thinking, you'd have to be an idiot to not know what amortization is, but many people don't and those who do generally do not understand how much it is really costing them. This wouldn't matter if people were not constantly bombarded to upgrade, downgrade, refinance or pay off debt with their mortgages. However, they are so as a keen blogger indicated the National Average to keep a mortgage is 3 years. 3 years! Do you realize how little principle payment that is??? It's astounding.

Ask yourself if your mortgage was paid off. Would your wife have to work? Would you have to work overtime? 2 jobs? What would that extra income do for you and your families life??

I don't care about the 3500 dollar commission. Yes it is pricey. The company decided to try to make full time agents with this program to get it out much faster. That's not what this is about though it's about getting people the true American Dream. Owning a home. Not owning a mortgage paying the bank ridiculous amounts of interest.

Central Bankers do control America. Call it conspiracy, shadow government whatever you want. It's the truth. I'm not a conspiracy theorist. I'm a realist. Show me enough facts and I will listen. Go to this website and use your own judgment: www.ctrl.org/boodleboys

The system does work. Once you understand it, it will blow you away like it did me. It's pure genius. I always saw the problem with the current mortgage system as I indicated above. If I could replicate the mortgage acceleration system and give it away for free I would. However, I can't so here is what I will do. I will personally teach and explain how the system works and how it can benefit your family. If you decide to get it..you will not buy it from me. Why? Because this is NOT about money. It's about much much more than that.

C.

The website is www.ctrl.org/boodleboys

Unfortunately, this blogging software does not allow previews or edits.

C.

Let's look at the first payment of C's post.

The rate is 6% per annum (per year)

principle = $200,000

1st month (there are 12 months in a year I hope)

monthly interest rate = 6% divided by 12 = .5%

$200,000 x .5% =  $1000 interest for the first month!

You then win the lotto and pay the balance of the mortgage off ($199,800.90)

Although you did not wait for 30 years to pay off the mortgage, you still got a 6% per annum rate on your mortgage.  This holds true for any of the monthly payments.

You pay more interest up front because the principle is larger!!! 

Simple compounding elementary mathematics.  You pay interest (or earn interest on savings) on the outstanding principle.  The interest just so happens to be quoted as 6% per annum.  Why don't we just say that it is half a percent per month???

Unfortunately, I don't have the patience to wade through all the posts on this subject. You can play with numbers any way you want to produce whatever result you want.

As many posters have pointed out, a standard mortgage loan is not front-loaded. Since you pay interest in arrears, you are paying for the use of the money you borrowed for the entire previous month.

If you knew how to derive the mortgage payment formula, you would realize the formula was designed to allow a borrower to have a consistent payment each month. That is why amortization tables are created by calculating the interest owed for the previous month and adding just enough principal to equal the calculated monthly payment. If a borrower is not penalized for pre-payment, she can easily convert the mortgage from equal monthly payments to equal principal payments by prepaying enough principal each month to achieve the desired payoff date.

Of course, if you choose to play games like making believe a standard mortgage is like a simple interest mortgage, then you can say "Look at all that interest you paid". When was the last time you got a simple interest loan? How about a Rule of 78 loan for cars? All that stuff is old hat.

Anyone can do mortgage acceleration on their own by taking everything left over in their checkbook each month and sending it to the mortgage company as an extra principal payment.

I tested the HELOC concept over and over. 98% of the savings comes from having extra cash each month to send to your mortgage company. The HELOC shuffle of moving cash in and out might yield you a couple of thousand dollars over the life of the mortgage, contrary to what mortgage acceleration program sellers claim. I ran many spreadsheets and have found that each dollar paid in interest to the HELOC is a dollar not paid to the mortgage. This will slow you down.

The real proof for anyone who is currently using mortgage acceleration software or services would be to prove to us that you can't do on your own! How? Just create an amortization table on a spreadsheet that includes the payments you made each month to pay down the mortgage. Now add the interest you paid each month on the HELOC to that amount. Tell us what you would have saved if you had done it without software. Show us the numbers.

Having a HELOC as backup is valuable. If you send all your spare cash to pay the mortgage down, you need a ready source of cash for emergencies. Credit cards are a temporary measure as they must be paid off at the end of the month because of the much higher interest rate. Once you borrow from the HELOC, you will, of course, switch to paying off the HELOC.

It is important not to consider the HELOC as a savings account. If you have a major purchase to make, set up a savings plan and reduce your mortgage pay off money. Don't borrow from the HELOC for a purchase.

Jimmy- You're looking at the 6 percent as the only interest saved.

Red,

You're not factoring in paying down the principle faster and its compounding effect.

Jimmy, 

You can run all the spreadsheets you want, but you don't have a clue what you're talking about.

BTW: I'm not selling any program, but thanks for taking the time to not read the posts and then making more comments that are covered in numerous replies.

Spending time here trying to educate people how to pay off their mortgages faster and having financial experts not have a clue what they are talking about is quite scary. Probably why most of the country is so far in debt. It's like the blind leading the blind in here.

You can do this system yourself and you will save a lot of money. However, all you need is a couple miscalculations in regards to HELOC interest and mortgage interest pay off and you'll lose your savings.

P.S. Most people won't be able to spend the time with their graphs or have the discipline to it. It's basically a financial GPS - you can always use a map, but a GPS is much easier.

Either way I'm tired of educating people who don't have a clue and don't care that they don't have a clue. I'm done with this thread. My only hope is that a couple people will take the time for their family to understand mortgage acceleration.

C.

Keith,

Simple question regardless of the hours you have spent getting statistics to support your service which I provide my clients for free...

What is the alternative?  80% of people could not afford the home they live in now if they could not leverage the purchase with a mortgage.  So no one owns a home but they save lot's of interest.

Why is it in your opinion so bad that banks make money?  Have you noticed lately how many are getting out of mortgages?  If it is so lucrative, why doesn't everyone sell mortgages?

The tax code works in the opposite direction-if we don't pay interest, we don't itemize the costs of owning a home. 

And finally how do you think the greedy bankers have been able to justify supporting mortgage brokers by paying such large yield spread premiums if they don't get the interest up front. 

I advise every borrower I deal with that interest is a factor of time, and whatever simple process you have of paying more than the minimum reduces that cost.  I don't charge for that, I don't sell bi-weekly payments which are the second biggest ripoff in the business. 

As they used to say in loan committee-if this were your money, would you lend it to this client?  If you don't like mortgages, pay cash!

Isn't it wonderful we live in a country where every opinion can freely be expressed?  For now, anyway!

Now, for those of you with your collective heads in the sands of life:  "C." a/k/a Christopher Dittemore, is THE most intelligent voice on this blog!

As a Realtor for nearly a quarter of a century, a small business owner, one who worked with a leading bankruptcy attorney, and one very familiar with every type of mortgage, what Keith and Christopher have said is TRUE.  I have a diverse background, and feel qualified to make the following comments:

Not every MLM outfit is a scam.  The ones in the past who WERE, gave everyone else a bad connotation.  After I first heard about United First Financial, I did hours of due diligence research.  EVER THE SKEPTIC, I wanted to know what/who they were.  Heaven knows we have enough scams out there today.

They have a sterling reputation and superior product.  In this day of massive layoffs, foreclosures, bankruptcies, and families laboring under the slavery of DEBT, why are all you detractors of the MMA program so opposed to a TOOL that will help Americans have a better standard of living?

I've seen this software.  It's nothing short of AMAZING!  CPA's, financial planners, mortgage loan officers, Realtors, and other savvy businesspeople are jumping on this!  Why?  BECAUSE IT WORKS BETTER AND FASTER THAN ANYTHING AN INDIVIDUAL COULD DO ON THEIR OWN. 

This TOOL keeps you accountable for your spending, keeps you on track with a real budget, and effectively is a rapid interest-cancellation vehicle.  You can do pieces and parts of ALL these things without spending $3500, but not as well nor as fast.  This company paid handsomely for a state-of-the-art proprietary piece of software to be developed TO HELP CONSUMERS.  And they did an excellent job.

What these bloggers fail to mention is this purchase is for LIFE.  The use of the software can follow the homeowners to any property they own, and the system can start all over again for rapid debt/interest cancellation.  It is a SYSTEM. 

In 1995, I paid over $2,500 for a desktop PC.  Today, you can purchase a decent system for around $900.  Calculators used to be the same way; expensive at their introduction, and now we find them for $1.00 at the Dollar Tree Store.  I believe the MMA software will follow the same path.  Eventually, the price will decrease, and most consumers WON'T be without it! 

Given the choice of potential bankruptcy or foreclosure vs. finding some discretionary income and getting a HELOC to purchase the MMA software, which would you choose?  I've heard of homeowners out of work, drawing unemployment checks, and the MMA program STILL works for them, and STILL helps them stay on budget and out of bankruptcy.  So investigate it for yourself and stop making rash judgements based on faulty and partial information.

As for the "conspiracy theory" and related comments made above by Christopher, HE IS CORRECT.  I invite you to keep an open mind and find the book "Behold A Pale Horse" by Wm. Cooper.  Your life will never be the same.  Your eyes will be opened, the blinders will fall, and you'll cease your uninformed, unintelligent remarks. 

By the way:  I don't know any of the people at this blog, neither Christopher nor Keith.  But I do believe in speaking up when warranted.  And most of you are WAY too naive!  BELIEVE THIS:  The bankers are rich, and getting richer by the day!  They create loan "products" to take our money and get richer still.  I have many mortgage officers who are friends, and they agree. 

In the past, the bankers were known as the "robber barons"....do you really think they've changed and become CHARITABLE today?

Arm yourself with real knowledge - and not the kind fed us by CNN, NBC, CBS, ABC, FOX, and the like.  When you care enough about your future to DIG for what's really happening, then perhaps you'll have a chance of survival..........and not end up sounding like a brainwashed idiot!

" Interest is interest. Period. "

You're right interest is interest.

What you're not factoring is amortization is FRONT loaded interest.

Which isn't a big deal - if you keep the property for the entire term. Since most don't the amount of principle pay off is peanuts, You already know this - so why argue?

The system leverages another financial vehicle to pay off the principle faster in the front loaded interest period - so you can get into the back end where all the major principle pay off is at.

I really can't make it any easier than that.

C.

P.S. Good to see someone who thinks before they type, True Clarity.

I addressed the "interest savings" in an earlier response.

You are basically giving away 10 dollars - to make 3 dollars.

I agree that you should definitely optimize your deductions and save as much interest as possible, but as far as that being an argument for not paying off a mortgage, it doesn't cut the mustard.

Now with the dollar dropping and the housing market finally showing it's true colors, maybe some people will be willing to see the truth for what it is.

C.

heres a rare idea, although all this is way way way over my head, I am smart enough to gain from this that mma, fixed, arm, etc... they all take more of your money than to pay cash from the getgo.  absolutely no interest at all, the house is 200000, save your money and pay cash and there you are, home paid in full with no interest, no mortgage, and no worries.  I know this is simplistic and will be laughed at as being sophmoric, simple, and unrealistic, but if one is not in debt, one could accumulate a large amount, say 200,000 from savings in less than 5-10 years, whereas most mortgages you are paying at least 15 or more, and paying double for your home.