This one is new to me…

[Andrast]

I did some research on these programs to try and figure out why they are so expensive ($3,500). Basically, $1,000 of that goes to the company and the remainding $2,500 is a commission structure. The more loans you sell, the more commission you get. And, if you can get people to work for you, you get a percentage of all of their deals including people that work for them. Supposedly this is a structure used in the insurance industry, but it sounded like a pyramid-type structure to me.

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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.

[Deal Hunter]

You should NEVER NEVER NEVER convert your traditional, fixed P&I or even an ARM First Trust Deed, that is NON-RECOURSE into a HELOC. HELOCs are RECOURSE loans that can be easily transmuted by the lender into revolving type unsecured notes that may never go away even after you have refinanced or sold the property.

This has been around for 10 years and many unsuspecting homeowners that are foreclosing or trying to short sell are not able to wipe out these loans because they are not closed traditional first mortgages. The HELOC lender will approve a short sale or deed in lieu but still pursue the homeowner for the full balance of the unpaid obligation for up to 25 years!

[Deal Hunter]

You should NEVER NEVER NEVER convert your traditional, fixed P&I or even an ARM First Trust Deed, that is NON-RECOURSE into a HELOC. HELOCs are RECOURSE loans that can be easily transmuted by the lender into revolving type unsecured notes that may never go away even after you have refinanced or sold the property.

This has been around for 10 years and many unsuspecting homeowners that are foreclosing or trying to short sell are not able to wipe out these loans because they are not closed traditional first mortgages. The HELOC lender will approve a short sale or deed in lieu but still pursue the homeowner for the full balance of the unpaid obligation for up to 25 years!

[Deal Hunter]

You should NEVER NEVER NEVER convert your traditional, fixed P&I or even an ARM First Trust Deed, that is NON-RECOURSE into a HELOC. HELOCs are RECOURSE loans that can be easily transmuted by the lender into revolving type unsecured notes that may never go away even after you have refinanced or sold the property.

This has been around for 10 years and many unsuspecting homeowners that are foreclosing or trying to short sell are not able to wipe out these loans because they are not closed traditional first mortgages. The HELOC lender will approve a short sale or deed in lieu but still pursue the homeowner for the full balance of the unpaid obligation for up to 25 years!

[Deal Hunter]

You should NEVER NEVER NEVER convert your traditional, fixed P&I or even an ARM First Trust Deed, that is NON-RECOURSE into a HELOC. HELOCs are RECOURSE loans that can be easily transmuted by the lender into revolving type unsecured notes that may never go away even after you have refinanced or sold the property.

This has been around for 10 years and many unsuspecting homeowners that are foreclosing or trying to short sell are not able to wipe out these loans because they are not closed traditional first mortgages. The HELOC lender will approve a short sale or deed in lieu but still pursue the homeowner for the full balance of the unpaid obligation for up to 25 years!

[Deal Hunter]

You should NEVER NEVER NEVER convert your traditional, fixed P&I or even an ARM First Trust Deed, that is NON-RECOURSE into a HELOC. HELOCs are RECOURSE loans that can be easily transmuted by the lender into revolving type unsecured notes that may never go away even after you have refinanced or sold the property.

This has been around for 10 years and many unsuspecting homeowners that are foreclosing or trying to short sell are not able to wipe out these loans because they are not closed traditional first mortgages. The HELOC lender will approve a short sale or deed in lieu but still pursue the homeowner for the full balance of the unpaid obligation for up to 25 years!

[Author]

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