2007-11-14 15:53:50 · 4 answers · asked by jason_medico 1 in Business & Finance ➔ Personal Finance
no take the cost of the service and apply it directly to the mortgage!!!
2007-11-18 11:53:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There is only one way to pay off a mortgage quicker than the schedule provided to you when the loan originated. Apply funds to the remaining balance. My mortgage allows me to pay extra every month and apply the extra to the balance. Since the balance lowers, as long as I pay what I am required later, I will pay off the mortgage at a date earlier than if I had kept to the schedule of payments. If this "money merge account" applies funds to the balance immediately and not just keep funds in the account until needed, then you will pay it off sooner than if you kept to the schedule. An example is in order. With my 30 year fixed rate mortgage, if I kept to the schedule, it would be at a 0 balance at 30 years. If I double the payment and apply the overage to the balance, I can pay off the same mortgage in about 10 years, which means I save a HUGE amount of interest charges. Not all mortgages allow paying down the balance to shorten the time, and apply a prepayment penalty if you do. The law says you can pay a loan in full at any time, but also allows the lender to charge you a fee if you do so. The prepayment penalty is there to compensate the lender for the amount of interest they lose by you paying the loan off early.
2007-11-15 00:16:46 · answer #2 · answered by rowlfe 7 · 0⤊ 0⤋
I have heard of this money merge thing. First of all you spend $3000 to buy their soft ware program. That makes no sense to me. If I had three thousand it would go straight into my mortgage. Then they get you to open a HELOC--another loan to basically pay your first loan. I believe I do a better job not giving away money and fees just because the idea sounds good. In a nut shell: this is a nice budget tool, and it is making these guys a huge fortune.
But I think if you live by a budget, and put any and all extra money into your mortgage, you can, and will pay down your mortgage faster. If you can't, then a fancy-shmancy programmer will for a fee.
2007-11-15 06:22:29 · answer #3 · answered by Nifty Bill 7 · 0⤊ 0⤋
Money Merge Account?
Never heard of it.
2007-11-15 00:04:56 · answer #4 · answered by atomzer0 6 · 0⤊ 0⤋