Re: United First Financial’s Money Management Account
I am not an agent for them, but I did check them out.
For $3,500.00, they will sell you access to a website that uses a program similar to MS Money. You use it as an electronic checkbook.
They promote the use of a US Bank HELOC, an arrangement they made with US Bank ($). Their advertised example is as follows: $200k 30 yr mortgage at 6%, $1,199/mo.
The example assumes an immediate $5k prepayment ( HELOC monies )against the mortgage principal and $1,000/mo ( 100% of the owner’s discretionary income ) prepayment which reduces a 30 yr mortgage down to 11.33 years.
Problem is – no one is going to commit 100% of their discretionary income to principal prepayment for 11.33 years.
Simple principal prepayment concept that a home owner can do for themselves. UFF refuses to talk about the net interest benefit. They only advertise the gross interest savings to cover the cost of their program.
Does MMA work? Yes. Can the home owner do better w/o the MMA program by prepaying only $200/mo? YES!
Every single one of these “wealth creation” and “debt reduction” programs promote the best gross benefits. If you back out the cost to get to the benefit, you can always do better by prepaying the principal yourself.
