There is a great void in the average American's financial education. While the majority of Americans would do anything to own their home, paying off a mortgage is getting more difficult, requiring many years and thousands of dollars in interest.
Many homeowners only vaguely understand the principle of compound interest, making budget decisions based on emotion or tradition. Money that could help reduce mortgage interest payments often sits idle in traditional checking and savings accounts.
By combining credit strategies with financial tracking software, United First Financial’s Money Merge Account™ packaged system addresses this void.
"Using advanced credit strategies, the Money Merge Account™ system and package offers the assistance of a friendly coaching staff, innovative software, and online tools to educate consumers about the use and repositioning of 'idle money' in checking and low-interest savings accounts.
"This packaged strategy lets their clients accelerate the principal pay down of their long-term mortgage, achieves substantial interest savings, and accrue equity in their homes much faster than they would by making additional principle payments each month.
The Money Merge Account™ system gives them the possibility, in many cases, of paying off their mortgage in ½ to 1/3 the time with little to no change in lifestyle."
How The Money Merge Account Works
The Money Merge Account system uses online software to streamline financial transactions between a primary mortgage and what United First Financial calls an Advanced Line of Credit or ALOC-generally, a home equity line of credit, also known as a HELOC.
The software directs you to make significant extra payments towards your mortgage [sometimes thousands of dollars] from your ALOC, using checks or wire transfers. To reduce the balance on your ALOC, you "deposit" your income as soon as possible.
As the month goes on, you use ALOC funds as you would use a checking account. Because ALOC interest compounds daily, you can keep a low balance for most of the month while using funds from the ALOC to pay your monthly expenses, including your monthly mortgage payment.
The software changes the timing of your extra mortgage payments so that your income payments cover all monthly ALOC finance charges, producing very little compound interest.
In effect, this system allows you to eliminate year’s worth of compounded mortgage interest charges in exchange for one month's amount of ALOC interest charges. "The Money Merge Account™ formula is based on quantifiable mathematics.
It indirectly follows the same money positioning practices that banks use. A bank might earn 6% interest on a home loan, and only pay out 0% to 1% interest on a checking or savings account, leaving an interest spread of 4% to 5% compounded interest gained.
The Money Merge Account™ system reduces the long-term interest due between the amount you owe on your mortgage and the amount you generate with your idle money, leading to substantial savings."
This simple concept involves complicated interest equations, making it impractical to calculate manually. The Money Merge Account™ software makes these calculations with advanced math engines.
As you enter your income and expenses, the software automatically adjusts the extra payment and the time you have potentially saved on your primary mortgage, showing how long-term interest affects your finances. Also, the software's True Cost feature shows you the real effects of your budgeting decisions.
If you make an impulse purchase worth $5,000, for example, the software may tell you that, depending on your mortgage and other factors that purchase may also cost you up to $8,000 in additional interest costs and pushed your mortgage payoff date back one year.
"This financial package is much more than just software,” "By combining financial budgeting education and personal coaching with educational software, the Money Merge Account™ system from United First Financial allows you to see the effect of poor, emotional budgeting decisions today. These tangible results lead to understanding and benefits that are unheard of in America today."
Supercharging Your Mortgage
Imagine what you could do with the money you pay towards your mortgage every month. After you pay off your home, you will be free to use mortgage income for other investments. Even if you aren't planning on staying in your home for the remainder of your mortgage, the extra equity you build with the Money Merge Account system has given you greater flexibility when moving to a new home. In many cases, the Money Merge Account™ system can also help reduce total interest charges on other debts.
UFirst's Money Merge Account™ packaged system helps make a measurable difference in our clients' lives. "Clients often end up thanking us for this program, instead of the other way around,” "Using nothing but mathematical formulas, professional coaching, and state-of-the-art educational software tools, you can supercharge the entire mortgage process and change your life. This is what America needs."
