November 29, 2007

Will Not Escrowing Payoff Your Mortgage Faster With The United First Financial Money Merge Account?

I was talking to my brother on the phone last night and he was telling me that he is currently escrowing for his taxes (he lives in a condo, so there is no escrow for the insurance). His escrow payment is $372.04 a month! YIKES! Anyway, I asked him why he was escrowing for his taxes since he was on the Money Merge Account?

So, we started talking and I said to him that if he could remove his escrow account and instead pay the taxes himself through the Money Merge Account, he would payoff his mortgage sooner. Now this sounded stupid since he has to pay his taxes anyway, why not just escrow them. So, I asked him to log on to his Money Merge Account when he got home and run the scenario and email the results.

Well, I am happy to say that my brother's payoff went from 5.75 years down to 5.25 years! That is 6 months of mortgage payments gone just from not escrowing! He will still pay his taxes in November of every year, but did you ever think this was possible?!

So, how is this possible? Here is the answer:

Instead of the $372.04 sitting in the bank's account, he will now have $372.04 more being deposited into his Money Merge Account HELOC. This will bring down his daily average balance more, thus allowing the Money Merge Account Software to make more principal transfers.

He was able to run this scenario in his Money Merge Account Software and put a future payment every November for his taxes. The Money Merge Account Software will notify him of the upcoming payment for his taxes and he can pay for his taxes right from his HELOC.

This is a great example of why homeowners need the Money Merge Account from United First Financial. Most people would simply think that since you have to pay your taxes anyway, why not just escrow. Most would never think that they could save 6 months or more in mortgage payments simply by not escrowing. If these people were on the Money Merge Account, they would be able to utilize the interest cancelation effects of the Money Merge Account to make this happen.

But, most people are just looking at the price tag for this program or thinking all they have to do is make extra payments to their mortgage to save. They don't realize that the Money Merge Account will save them more in the long run. Oh well, maybe after reading this post, more people will realize the benefits of the Money Merge Account and contact me to get on the program.