Has anyone heard of MMA, a means to reduce your home mortgage by 8-11 years on a 30 year mortgage?

Answer 1

This site answers your question pretty well.

Answer 2

Not generally a good idea. See the disadvantages listed here:

http://en.wikipedia.org/wiki/Money_merge_account

You are better off saving in a regular saving account, and paying 13 or more 'monthly' payments a year to your mortgage account. Most companies will let you pay an additional $100, $200 or whatever on each mortgage payment - you have to tell them this is a 'payment against principal'.

Doing this will also reduce a 30 year mortgage to 20 years or less, depending on what you pay extra, and will saving you tens of thousands in interest.

Answer 3

Why would anyone want to pay their mortgage off early??? You're probably only paying 5 or 6% interest which is deductible. You can take the money you would have used to pay off your mortgage and invest in a mutual fund and earn around 10%. Paying off your mortgage represents an opportunity cost of 4 or 5%. Don't pay off your mortgage. It is a stupid financial move.

Answer 4

all PLANS I have seen charge money to set it up.
What they do is to accept 1/2 payment every 2 weeks. You then end up making 13 payments a year. Usually, they don't factor in a reduction of interest because you pay 1/2 every 2 weeks either.

Not worth it if you are disciplined enough to do it yourself. Simply make ONE extra mortgage payment per year and you can do the same thing. But you need to be planning on it all year by putting that money away as you go, like withholding taxes. Otherwise you will never have it to make the payment.

HOWEVER, when you send it in make sure you specify that it is to be applied to the principle only.

Answer 5

Never heard of that, but I got my 30 year mortgage paid off in 12 years by paying extra each month on the principle.