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Money Merge Account Review - The Truth About the Money Merge Account
Over the past several years homeowners are facing the reality that their mortgage really is their biggest debt. With home values shooting up, homeowners have tapped into this equity to facilitate a more appealing lifestyle, ignoring what this will do to their financial position in the long run. Now with lenders closing shop left and right, mortgage originators dropping like flies and creative loan programs beginning to rear their ugly heads, there will be more demand to find solutions to foreclosures.


One of the programs that are beginning to surface is the concept of the Money Merge Account. The concept behind this plan is not new, and involves paying extra money to principal to cancel interest. Many homeowners do this now to a certain extent. With the bi-weekly payment plan a homeowner pay s two payments each month. With this they can expect to pay one extra mortgage payment per year.


In order to build equity more rapidly, you must have a lender that will immediately apply each 1/2 monthly payment upon receipt. If the lender waits until the second payment has been received before crediting the loan, you won t see the benefits. When worked properly, this is a decent plan and is effective in reducing your amortization schedule. One of the downsides of this is that there is no built-in plan to come up with the extra money.


Another method to paying off mortgage and other debt is the debt roll-down. The idea here is to set aside a certain amount for debt repayment and continue to maintain the total monthly amount you pay in debt reduction even after the first debt is paid off. You would then target each debt you have in the order of highest interest rate. This is effective, requires a lot of discipline but does not employ the concept of interest arbitrage, or interest cancellation.


The Money Merge Account is neither a bi-weekly or debt roll down. With the Money Merge Account, the homeowner would set up a specific type of HELOC (Home Equity Line Of Credit) that would be open-ended. In this case the interest would be charged on the average daily balance rather than month-end principal balance and would act as a primary checking account allowing monies to be deposited and withdrawn using checks, debit or transfers. Rather than using a standard checking or savings account where your money sits, waiting to be spent and doing nothing for you; you would use the functionality of the HELOC to compress the principal balance in which the interest is calculated (on an average daily balance).


Taking into consideration the structure and interest rates of the HELOC and the first mortgage, your income and expenses; the Money Merge Account software would prompt you periodically to make extra payments to your first mortgage. This prompt would be a specific dollar amount, to the penny and applied on a specific date as to maximize interest cancellation. Once the payment is made, the balance owed on the HELOC would go up, you would then deposit your paycheck back into the HELOC driving the average daily balance and interest charges back down canceling interest until it s time to pay expenses again.


By using this method, you are using a portion of your discretionary income which includes the offset interest from the HELOC. The extra payments to your first mortgage would not necessarily be applied every month; it would depend on your particular cash flow situation. With this method, the average homeowner will pay off their home in as little to to 1/3 the time.


So with the cooling real estate market and ever increasing demand for solutions to mortgage debt, many ideas will emerge, as necessity is truly the mother of invention. Whereas the concept of interest cancellation is not new, the systematic approach of the Money Merge Account software definitely is and worth a second look as a viable option.


I hope you have found this article informative and interesting. Feel free to contact me if you have questions.


-Greg Campbell

Greg Campbell is a San Diego based entrepreneur, independent agent for United First Financial, surfer and father of 2. Greg has been in the real estate and mortgage industry for many years. With the emerging real estate mortgage debt America is accumulating, Greg has shifted his focus on helping people overcome their financial bondage. For more info or to contact Greg, visit: www.DissolveYourMortgage.com

Home Equity Loan Vs Home Equity Line of Credit
There are two types of home equity debt: home equity loans and home equity lines of credit, also known as HELOCs. Both are sometimes referred to as second mortgages, because they are secured by your property, just like the original, or primary, mortgage. Home equity loans and lines of credit usually are repaid in a shorter period than first mortgages. Most commonly, mortgages are set up to be repaid over 30 years. Equity loans and lines of credit often have a repayment period of 15 years, although it might be as short as five and as long as 30 years. A home equity loan (HEL) is very similar to a regular residential mortgage except that it typically has a shorter term and is in a second (or junior) position behind the first mortgage on the property ” if there is a first mortgage. With a home equity loan (HEL), you receive a lump sum of money at closing and agree to repay it according to a fixed amortization schedule (usually 5, 10 or 15 years) with the same payments each month. Much like a regular mortgage, the typical HEL has a fixed interest rate that is set at closing for the life of the loan. Such loans are typically granted for up to 80% of the value of the home, but some lenders will lend up to 125% of the home s value. For example, if your home is currently worth $130,000, and you have a mortgage against it for $70,000, then you have $60,000 of equity available. Some home equity loans may allow you to borrow up to 80% of your home s value, others may go higher in special circumstances. This loan is very suitable for people who need money in a long term and own any home or property. With this kind of loan, borrower can lend an amount of money equivalent to the equity of their property without selling it. While the lender will lend the money in safety as they hold the guarantee if the borrower can t pay the money they lend. The idea of getting a home equity loan while interest rates are low to help you pay off your bills, buy a car, or even pay for your child s education may seem like a great idea. However, you should educate yourself first so you know exactly what a home equity loan is and if it is really right for you. A home equity line of credit (HELOC) in many ways is similar to a credit card. At closing you are assigned a specified credit limit that you can borrow up to a certain amount for the life of the loan - a time limit set by the lender. During that time, you can withdraw money as you need it. The borrower is usually given special checks that he or she may use to write checks against the loan amount. The borrower may borrow a little at a time, or borrow all of the loan amount at once. As you pay off the principal, you can use the credit again, like a credit card. HELOC funds are borrowed on demand and you pay back only what you use plus interest. Depending on how much you use the HELOC, you will have a minimum monthly payment requirement beyond the minimum, it is up to you how much to pay and when to pay. One more important difference: the interest rate on a HELOC is adjustable meaning that it can - and almost certainly will - change over time. A HELOC can be most useful if you are taking on a project, such as home repair, that has the potential of unforeseen expenses. A HELOC offers you the flexibility to borrow again and again. You may even be able to secure a HELOC that carries a low interest-only payment allowing you to borrow more and still have a manageable payment amount each month. Whichever you choose, drawing against the equity in your home is sure to save you money on the interest you re paying for your purchase power, and as always, the interest you pay on any type of home mortgage is tax-deductible, offering an additional incentive. Home equity loans and home equity line of credit can be a wonderful tool when used correctly. Do your homework first, find the loan that best matches what you want, and go for it. Just make sure you don t over extend yourself or sign documents that will give you nightmares forever. For more information, let’s visit http://www.paydayloan-information.com

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Property Purchasing ‘Getting Worse’ For Graduates Posted By : Steve Smith
An increasing number of graduates are unable to afford to take the first steps on the property ladder, new figures report.