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.

Use a HELOC from any property to pay down your mortgage with the United First Financial Money Merge Account

I had a client call the other day and we were on the phone for a while. He told me he liked to use the Money Merge Account from United First Financial to help pay down his home, but he didn’t have any equity to get a Home Equity Line of Credit.

At that point things looked grim, but I asked if he owned any other properties which might have some equity in them. He said he had an investment property with plenty of equity and could get a Home Equity Line of Credit (HELOC) on it. Bingo! Needless to say, he is in the process of getting the HELOC and we are moving forward with the Money Merge Account.

This is another reason why I like the Money Merge Account so much. You can use a HELOC from another property you own to pay down the mortgage on a different property. This is great because if you were trying to use the Money Merge Account to pay down the loan on a commercial property or piece of land, chances are you couldn’t get a HELOC on those types of properties. But, you could get a HELOC on your primary residence and then use the HELOC with the Money Merge Account to pay down your mortgage on the commercial or land. Very Cool!!!

So, if you want to use the Money Merge Account from United First Financial to pay down you mortgage and you don’t have enough equity in the property to qualify for the HELOC, let me know if you have another property with some equity in it and we can get the HELOC on that property.

Will the United First Financial Money Merge Account Work On Interest Only and Negative Amortization Loans?

I received a call last week from an Agent in San Diego. This happen a lot since many Agents find my blog and website because the rankings I have on Google. I couldn’t tell you how many contact me thinking my office is the home office of United First Financial, but I’m always pleasant and willing to help out even though they aren’t part of my group.

Anyway, one of questions she has was, “Will the Money Merge Account work on an interest only loan?” She told me that a mortgage broker stated that the Money Merge Account won’t work on these types of mortgages or negative amortization loans. So, to clarify things I want to say that the Money Merge Account WILL work with interest only and negative amortization loans. How? Well let me explain…

The number one component that drives the Money Merge Account is discretionary income. This is not the only component, but the most important. As long as the client has enough discretionary income to cover the difference between what the fully amortized payment and the interest only or negative amortization payment are, then the Money Merge Account will work.

For example:

$200,000, 30 Year Fixed Mortgage at 6% = $1,199.10 monthly payment

$200,000, Interest Only Mortgage at 6% = $1,000.00 monthly payment

Difference between payments is $199.10 monthly.

In the above example, the difference between the payments is $199.10 monthly. Therefore, in order for the Money Merge Account to work for this person, they need to have at least $199.10 in discretionary income.

Now, discretionary income can come from a number of places. It is not just left over money once all your other bills are paid. It can also come from payments toward a debt.

For example, a person has $10,000 in credit card debt that they are paying $400 a month. The current rate on a Home Equity Line of Credit (HELOC) is 7.50%. If we were to put the $10,000 in credit card debt on the HELOC, the payment would be $62.50. The difference between these payments is $337.50. Therefore, the Money Merge Account would utilize a portion of the $337.50 towards the client’s discretionary income.

I actually just ran a Money Merge Account Analysis for a client who has a situation similar to the one above and they knocked 10 years off their interest only mortgage.

The same would hold true for someone with a negative amortization loan. As long as they have enough discretionary income to cover the difference between the minimum payment and fully amortized payment then the Money Merge Account would work for them as well.

I hope this clears up some misconceptions of the Money Merge Account. If you haven’t done so, let me run your Free Money Merge Account Analysis and see the results for yourself.