money merge account (mma) how can i pay my home off early? conventional banking refinance to a lower...
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Money Merge Account
(MMA)
How can I pay my home off early?
Conventional Banking• Refinance to a lower interest rate• Apply additional money to each payment• Bi-weekly payment
Money Merge Account system• No refinancing necessary of your 1st mortgage• No alteration to your current standard of living
Principal Interest Balance Equity Paid
Month 1
Month 2
Year 1
Year 5
Year 10
Year 21
Year 30
$199.10 $1,000.00
$200.10 $999.00
$210.33 $988.77 $197,543 $2,457 $14,389
$267.22 $931.88 $186,108 $13,891 $71,946
$360.44 $838.66 $167,371 $32,628 $143,891
$696.23 $502.89 $99,877 $100,123 $302,173
$200,000 Principal Balance6% Interest Rate
$1,199.10 Monthly Payment
$431,677
ALOCAdvanced Line Of Credit
CheckingSavings
Credit CardsRevolving Debt
2nd MortgageMMA Software
Checking
Savings
Credit Cards
Revolving Debt
2nd Mortgage
Money Merge Account (MMA)
ALOC Functionality• Becomes your primary checking account• Deposit all of your income into ALOC• Pay all your bills from the ALOC
Optimum Performance of ALOC• Deposit the maximum amount of money into
the Advanced Line of Credit• Keep it in there as long as possible
If you have any kind of debt, you should NOT have your money stagnating in a checking or savings account!
Checking Savings
Create an
Interest Cancellation Account
Australians pay $100,000 - $150,000 less in interest on their mortgages
than do we Americans.
$200,000
$40,000
Mo
rtg
age
ALOC
Checking
Savings
Credit Card
Revolving debt
2nd mortgage
MMA Software
$195,000
$5,000 Funds Transfer
Mo
rtg
age
$5,000
ALOC
Funds Transfer: borrow money from your ALOC to pay down your 1st mortgage.
$195,000
Mo
rtg
age
$ 0
ALOC
- $5,000 Funds Transfer
+ $5,000 Pay Check
$ 0
Money Merge Account (MMA)
Funds Transfers:
• Every 2 to 6 months
• As you pay the ALOC down, when the balance is almost zeroed out, the software will optimize when to do another funds transfer
How we pay the ALOC balance down:
• Using a portion of your discretionary income
Sample Family
$5,000 Monthly income-$4,000 Living expense (mortgage, car payment)
$1,000 Discretionary income
$200,000
$40,000
Mo
rtg
age
ALOC
Month 1 $3,500 MMA investment
$4,000 Expenses
$7,500
$5,000 Income
$2,500 Average Monthly balance
Month 2 $4,000 Expenses
$6,500
$5,000 Income
$1,500
$20.83
$12.50
Month 3 $1,500
$4,000 Expenses
$5,500
$5,000 Income
$ 500
$3,675.77 Funds transfer
$4,175.77 Average monthly balance$34.80
Interest Cancellation
$17,249
Reduced mortgage by18 months
Principal Interest Balance
Remaining
Payments
Month 1 199.10 1,000.00 199,800.90 359
Month 2 200.10 999.00 199,600.80 358
Month 3 201.10 998.00 195,723.93 339
Month 4 220.48 978.62 195,503.45 338
Month 5
`̀Principal Jump
3 month total
$68.13
$220.48
$201.10
$ 19.38
Month 4 $4,175.77
$4,000 Expenses
$8,175.77
$5,000 Income
$3,175.77 Average Monthly balance
Month 5 $4,000 Expenses
$7,175.77
$5,000 Income
$2,175.77
$26.46
$18.13
Month 6 $2,175.77
$4,000 Expenses
$6,175.77
$5,000 Income
$1,175.77
$2,920.23 Funds transfer
$4,096 Average monthly balance$34.13
Interest Cancellation
$12,274
Reduced mortgage by
16 months
Principal Interest Balance
Remaining
Payments
Month 4 220.48 978.62 195,503.45 338
Month 5 221.58 977.52 195,281.87 337
Month 6 222.69 976.41 192,138.94 323
Month 7 238.41 960.69 191,900.53 322
Month 8
`̀Principal Jump
6 month total
$146.85
$238.41
$222.69
$ 15.72
6 month total
Interest Cancellation
$29,523
6 month total
Reduced mortgage by
31 months
Month 7 $4,096
$4,000 Expenses
$8,096
$5,000 Income
$3,096 Average Monthly balance
Month 8 $4,000 Expenses
$7,096
$5,000 Income
$2,096
$25.80
$17.47
Month 9 $2,096
$4,000 Expenses
$6,096
$5,000 Income
$1,096
$2,917.68 Funds transfer
$4,003.68 Average monthly balance$33.36
Interest Cancellation
$11,155
Reduced mortgage by
14 months
Principal Interest Balance
Remaining
Payments
Month 7 238.41 960.69 191,900.53 322
Month 8 239.60 959.50 191,660.93 321
Month 9 240.80 958.30 188,502.45 309
Month 10 256.59 942.51 188,245.86 308
Month 11
`̀Principal Jump
9 month total
$223.48
$256.59
$240.80
$ 15.79
9 month total
Interest Cancellation
$40,678
9 month total
Reduced mortgage by
42 months
Month 10 $4,003.68
$4,000 Expenses
$8,003.68
$5,000 Income
$3,003.68 Average Monthly balance
Month 11 $4,000 Expenses
$7,003.68
$5,000 Income
$2,003.68
$25.03
$16.70
Month 12 $2,003.68
$4,000 Expenses
$6,003.68
$5,000 Income
$1,003.68
$2,917.67 Funds transfer
$3,921.35 Average monthly balance$32.68
Interest Cancellation
$ 10,184
Reduced mortgage by
14 months
Principal Interest Balance
Remaining
Payments
Month 10 256.59 942.51 188,245.86 308
Month 11 257.87 941.23 187,987.99 307
Month 12 259.16 939.94 184.811.16 295
Month 13 275.04 924.06 184,536.12 294
Month 14
`̀Principal Jump
12 month total
$297.89
$275.04
$199.10
$ 75.94
12 month total
Interest Cancellation
$50,862
12 month total
Reduced mortgage by
53 months
Loan amount: $200,000
MMA Program Conventional Program
Starting balance $200,000
Balance in 1 year:
10.4 years
$70,422
30 years
$231,677
$200,000
Balance in 5.5 years:
Repayment time
Total interest paid
Total interest savings: $167,219
$184,811 $184,752Balance in 1 year:
$197,543
Money works • 24 hours a day• 7 days a week • 365 days a year• It doesn’t take vacations• It doesn’t call in sick• It just works and works and works!
Do you have your money working for you?
~ or ~
Do you have your money working for the bank?
•Utilities•Food•Clothing•Transportation•Entertainment
Funds Transfers How much… - If you transfer too much,
interest charges will eat you up - If you transfer too little,
not enough principal increase - Dollar amounts are different every time How often… - Frequency varies every time
True Cost
How much does that item really cost me over time……
Money Merge Account (MMA)
Web site• Does NOT move money• Does NOT pay bills• Functions as an account register
– Wants to know how much money is coming in
– Wants to know how much money is going out
• Tracks your monthly budget• 10 minutes per month to update• Continuous customer support
Purchase of an automobile - Should I make monthly payments (4% interest rate)?OR - Should I write a check from ALOC (8.6% interest rate)?
Borrow $25,000 at 4% for 5 years
Payment of $460
Option #1 Finance the car at 4% interest rateOption #1 Finance the car at 4% interest rate
Option #2 Pay cash for the car using funds from the ALOCOption #2 Pay cash for the car using funds from the ALOC
Comparison
Option #1 Finance the car Option #2 Pay cash using the ALOC
14.75 years to pay off 12.33 years to pay off
Lien on the car Own the car outright
**Even though the line of credit has an 8.6% interest rate we don’t pay 8.6% interest because we are using the ALOC as an interest cancellation account. Our effective interest rate is much lower!
Create A Retirement Nest Egg
• Your home is PAID OFF in 10.4 years• For the remainder of the 19.6 year mortgage• $1,199.10 per month• $1,000.00 discretionary income
6% 8% 10%
$973,000 $1,231,000 $1,575,000
10.419.630.0 years
15% - 25% ahead of written guaranteed pay off date - because the proposal is a conservative projection - because of the Report Section (people budget more)
Financial Optometry Report Option 1 Option 2
Years to pay off mortgage 10.4 30
Effective interest rate 2.085% 6%
Interest paid $70,422 $231,677
Interest saved $167,219 $0
Retirement account $1,000,000 $0
Pay off at age 50 yrs old 70 yrs old
Move forward with MMA, or keep doing what you’re doing?
Get your
Free
Software Analysis