Rafeeq,

I have a very keen eye on the economy and have shown that even in today's economy, mortgage acceleration is far worse than even just applying the concept yourself for its value (the MMA, that is) is only measured in hundreds due to the actual savings it provides, and when you factor in the time value of money, it actually costs more than if you never bought the software in the first place.  Just look at this post.

Now, I don't normally point out individuals as that is not professional, but your comments are very misleading and are a good example of what UFF agents are like when dealing with them.  Let's break down a few...

"Please look around the economy. you think instead of mortgage acceleration, people should invest money." People are better off keeping the money in liquid accounts.  Most of these accounts have held their value, if not increased in value, even in recent history.  I doubt you would argue that there are now some great opportunities to invest, in multiple markets, even globally.  In one of my stock portfolios, I have gained 35% in the last month, though I would not recommend using stocks as a safe guard.

"Do you realize all these forclosures could have been avoided if the borrowers pay off their mortgage and own their home free and clear."  Most people using the MMA software have not paid off there homes, and I would venture to guess that since the MMA program has been telling them to send their discretionary income to pay off their first mortgage, more people have lost their homes using the MMA than have had their homes saved in the current marketplace.  The bottom line is that your statement doesn't even apply to whether or not the homeowner is using the program, rather whether or not they have paid off their mortgage through ANY strategy.

"Even with an extra dollar in income a month a home owner can reduce a few years off their mortgage."  This is the kind of bullshit I can't stand, sorry.  One dollar isn't going to shave off a few years of anyone's mortgage, unless that mortgage is for over a hundred years.  Many UFF agents make deceitful statements like this to sucker people in.

"UFF software calculates and it educates a customer what debt to be paid first."  Does it really do any type of education?  Absolutely not.  Check out this post to see what I mean.

"People have lost money with their investments."  Yes, people have lost money in their investments.  Oh, and yes, people have made money in their investments.  People also have long term financial goals and when following them, they don't worry about short term losses and use them as opportunities, maintaining their focus on the long term goal.  Since you lose money now, should you stop investing?

"With a home the value will appreciate."  More bullshit and for someone whom started off your last comment with "please look around the economy", maybe you should take your own advice.  My own home is down nearly 40%.  That sounds like awesome appreciation to me.

"If you beleive investing in stocks is the best option, then why experts in the field, lehman brothers, bear stearns are wiped out?"  I don't believe stocks are the best options and never said that.  the best options actually depend on the individual's situation.  As for Bear Stearn's and Lehman Brothers, it doesn't take much to figure out what caused their demise.  For the most part, it can be summed up in excessive risk taking, something we all should avoid.

As I said, I don't like publicly correcting individuals as agressively as I have done with your last comment, but you prove the statements I have made in other posts quite well and that needed to be brought out.

Rafeeq,

Please don't misinterpret what I said about automation, or GPS. My statements are that I do not want to rely on them, not that I don't want to use them. I am all for automation to help us make things easier. However, automation, even GPS, can provide the wrong signals and steer us into a mountain. I rely on what I know and use all tools available to me to ensure a safe flight, even if the government turns off GPS (yes they can do that).

As for Ernst and Young and the mortgage and financial magazines, let's get real. E&Y gave them entrepreneur of the year because they are successful in selling the MMA product, not because the product is necessarily good. As for the mortgage magazines, Broker Banker is the #1 advocate for the MMA program, but is that any wonder since the publisher is also listed as a UFF agent (he sells the product himself)?

It amazes me that you don't think that the stock market will come back, yet your home's value will increase with certainty.  If we look at history, we see both will come back and the reality is that if stocks don't rebound, housing will not likely rebound either.

Now, as for your scenario above, you have already strayed from the mere $1 and increased that to $25 to prove your point.  As for the scenario as a whole, you omit key points about the individuals situation.  Any prepayment program will tell you that the extra $25 will only save the $14,965 you mentioned.  As for the MMA being able to save this individual $86,514, I highly doubt that without skewing data.  As I ran it, a more realistic savings would be merely $9,328.  If you send me the data as you ran it, I can take a better approach.  Please include a list of expenses, income, etc.  Also, remember that income is not paid on the first of the month and all expenses on the last, thereby maximizing the MMA benefit.

The other point you omitted was the time value, or future cost of the program, which if applied directly to the loan balance saves the homeowner $19,657.  Add the extra $25 per month to that and we now have a savings of $38,207. 

Now, we could keep going back and forth, but I have done that many times on other posts.  Since I am very busy and do not have adequate time to keep commenting the same old stuff, further comments may simply be deleted instead of replying.