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someone explain to me this mortgage deal (aka scam?)

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someone explain to me this mortgage deal (aka scam?)

Old 02-29-08, 06:03 PM
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someone explain to me this mortgage deal (aka scam?)

i hear their ads on the radio all the time. basically they say they can lower your monthly payments, and your overall balance and help you pay off the home in less time.

how is that even possible? they dont give any details on the phone- just a bunch of random clients (actors) saying "this was great! my payment is lower and we saved so much!!!" typical bulshit.

there has to be a scam in there somewhere...anyone in the field/mortgage specialist know what they use to get people to sign up to screw them over? anything this good to be true, is definitely not true. probably something in the fine print that says after 5 years, they own the house or you have to give up your liver or first born...some shit like that.
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Old 02-29-08, 06:44 PM
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Balloon payments, variable rate mortgages, etc?
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Old 02-29-08, 07:20 PM
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A good fixed rate mortgage of today can possibly be at lower interest rate than an "older" fixed rate mortgage. A good fixed rate mortgage of today will definitely be better than any "older" variable rate mortgage. Depending on the specifics of the old terms vs. the new terms, those advertised claims (lower monthy pmt, lower rate, reduced payoff time) can be true. There's nothing magical or necessarily scammy about that. I'm not saying that particular company is legit. I'm just saying that it is possible for the numbers to line up, in such a way for it to be a good deal.
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Old 02-29-08, 07:28 PM
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so did they just use the example of certain clients whom they helped due to a horrible previous mortgage and pass that off as what they can do for anyone? thats what it sounded like.
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Old 02-29-08, 08:03 PM
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Nope they say that if you have a mortgage, they can help you pay it off in full in like 5 years, they play those ads in Los Angeles.
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Old 02-29-08, 08:15 PM
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It's hard to tell what you're talking about without hearing any of the ads.
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Old 02-29-08, 08:40 PM
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Originally Posted by The Bus
It's hard to tell what you're talking about without hearing any of the ads.
true - i wish they were online somewhere.

i just dont get how they can reduce payments, and reduce your balance at the same time.
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Old 02-29-08, 09:38 PM
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It's probably one of those biweekly payment programs where they charge you extra for the privilege of doing what you can do on your own for free.
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Old 02-29-08, 10:23 PM
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Originally Posted by Duran
It's probably one of those biweekly payment programs where they charge you extra for the privilege of doing what you can do on your own for free.
If people are dumb enough to pay for that, they get what they deserve.
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Old 03-01-08, 02:36 AM
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It sounds like one of those money merge accoounts, where you basically open up a HELOC to pay all of your bills and you desosit your paycheck right into the same account. So anything extra gets shoveled into paying down the mortgage.

I have heard there is some sort of "software" that you have to pay something like 3 grand for.
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Old 03-01-08, 07:51 AM
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Originally Posted by atari2600
true - i wish they were online somewhere.

i just dont get how they can reduce payments,
That's easy to play around with Either bi-weekly payments or convert to an arm or convert to interest only or some sham like that for someone that is completly focused on monthly payments and not the big picture.

and reduce your balance at the same time.
Not happening, no one is going to give you a loan for a lower balance than what you already owe. It is really just a payment game and over 20-30 years you will end up paying more.
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Old 03-04-08, 10:54 AM
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Glad I searched first.. I was just about to start a thread about what I think you heard about.. It's called the "Money Merge Account System" just as Jadzia said..

My insurance agent is actually in the process of getting it setup for himself so I can provide more details later.. I just watched this video from the company he is getting it from. It's long (about 10-15 minutes) but explains everything pretty well.

http://www.u1stfinancial.net/index1.aspx

It's VERY intriguing but I am going to wait and here more from him (and anyone here that may have insight).
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Old 03-04-08, 11:03 AM
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It's not anything you can't do by yourself with some discipline.
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Old 03-04-08, 11:06 AM
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Originally Posted by The Bus
It's not anything you can't do by yourself with some discipline.
Do tell..
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Old 03-04-08, 11:47 AM
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Originally Posted by tbird2340
Do tell..
From the FAQ on their page:

Q. Can I do this concept on my own?
A. Absolutely.

They're basically selling a service to let you do something which you can do on your own.
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Old 03-04-08, 12:45 PM
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Oh, so you were just quoting them in your own words..

Your post made it sound pretty simple.. So can you tell us how to do it? I have discipline.
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Old 03-04-08, 12:53 PM
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Someone would need to explain it in a paragraph, but I'm pretty sure I know what they're doing. I tried to confirm it by looking at the linked video but I turned it off after the third mention of a "paradigm shift" in the world of finance thanks to one company with "the vision" to make it happen. That pretty much guarantees that it's BS.
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Old 03-04-08, 12:57 PM
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Originally Posted by The Bus
Someone would need to explain it in a paragraph, but I'm pretty sure I know what they're doing. I tried to confirm it by looking at the linked video but I turned it off after the third mention of a "paradigm shift" in the world of finance thanks to one company with "the vision" to make it happen. That pretty much guarantees that it's BS.
Huh? This has nothing do to w/ the debt-snowball as I just got done reading Ramsey's book.. We did the debt snowball method about 5 years ago (reading the book again to find out what we should be doing next).
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Old 03-04-08, 06:55 PM
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Originally Posted by tbird2340
Huh? This has nothing do to w/ the debt-snowball as I just got done reading Ramsey's book.. We did the debt snowball method about 5 years ago (reading the book again to find out what we should be doing next).
As it turns out, the company (UFirst) bought an article in a magazine I get. I guess they're trying to get the word out through financial professionals.

It's even more retarded than I thought:

http://thejubileeproject.com/learn--...aloc-heloc.htm
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Old 03-04-08, 06:57 PM
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A liquid mortgage? Sweet!!
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Old 03-04-08, 08:26 PM
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Do I understand the claims correctly? 1) I can make interest-only payments, 2) I can withdraw money that I paid towards a mortgage, and 3) the result will be a mortgage that's paid off sooner.

I pay less money, the bank gets a good return on their loan, and the Jubilee Project makes a profit. Everybody wins!
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Old 03-05-08, 12:00 PM
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im more confused than when i started the thread...
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Old 03-05-08, 12:51 PM
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This is the Slanket of financial instruments.
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Old 03-05-08, 12:52 PM
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Originally Posted by The Bus
This is the Slanket of financial instruments.


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Old 03-05-08, 01:04 PM
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Originally Posted by Nick Danger
Do I understand the claims correctly? 1) I can make interest-only payments, 2) I can withdraw money that I paid towards a mortgage, and 3) the result will be a mortgage that's paid off sooner.

I pay less money, the bank gets a good return on their loan, and the Jubilee Project makes a profit. Everybody wins!
After briefly glancing at this I have a good idea of what they are doing (or attempting to do) but I question how effective it is.

Basically they are using the same strategy that financial institutions have used for years. They are sweeping money. By tying a line of credit to your accounts and taking dormant balances (say you keep $2500 average in your checking account each month) and applying them to the principal of your mortgage.

Here is where I am unclear. Unless your mortgage is recalculated each month to take into account a lower principal balance, then there is no benefit to applying these funds to the balance for the purpose of reducing the principal and therefore the interest due.

Q. Does the Money Merge Account system create money in addition to my regular income to help pay down debt?
A.
No, the Money Merge Account does not create money "out of thin air." It is a proven system that uses existing banking tools, financial strategies and education to assist homeowners in saving interest and paying off debt at an accelerated rate. This system helps homeowners reduce the interest and time owing on their existing mortgage by repositioning their unused idle money, which normally sits in their accounts with their regular monthly expense money until it is otherwise needed to pay expenses. When money is needed for expenses, it can be accessed through their line of credit. This system helps to maximize interest savings with each and every penny and recalculates to maximum efficiency under this concept each and every day.
Being a former banker I would want to see the amortization schedules with these "recalculations" done.

The other point they seem to neglet to tell you is that you are paying interest on this line of credit. How much impact does that have?

Prepaying principal is still the simplest method of reducing the time to payoff a mortgage. Whether or not this makes sense for an individual depends on their tax situation.

Last edited by Brian Shannon; 03-05-08 at 01:07 PM.
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