Money Merge Accounts Promote a System to Pay Mortgage off Early, What Are They and Do They Work? Several firms promote home mortgage payment systems commonly known as Money Merge Accounts which assist in early mortgage payoff. I have been approached socially, professionally and at church by individuals marketing these programs, therefore I wanted to learn more about them. This article reports what I found out about them. I feel it is important to note that I have never marketed such programs and have tried to keep this article as informative and free of bias as possible. The Money Merge Account Overview: Money merge accounts originated in Australia and over the last few years have gained in popularity in the US. Several companies under different names market them, and each one may be a little different. For simplicity I will refer to them all as MMA and not discuss the differences of each program. They are early home mortgage payment systems offered as an alternative to traditional ways of making extra mortgage payments or bi-monthly payment plans. Characteristics of money merge accounts – MMA: Money merge accounts are a system and software to pay off mortgages early using the combination of four elements: 1. Regular fixed first mortgage 2. Home-equity loan/line of credit 3. Monthly earned income 4. Monthly bills The service consists of software which estimates the cost savings, and manages the cash flow and transfer of money between the four elements listed above. They provide telephonic and web based support. Software and service as explained to me, provides mathematical cost savings by: making advance mortgage payments, using different loan accounts to move money back and forth to minimize interest costs, and precise timing of both. The services usually are front-loaded, meaning you pay 100% up-front for unlimited software use and service that doesn’t terminate in time, compared to paying a small up-front charge and annual maintenance charges. The cost is between $2,000 and $4,500. The services are marketed by financial professionals, including mortgage brokers, realtors, insurance and financial advisors, and through multi-level marketing programs. Depending upon the agent’s level, commissions can range from several hundred to several thousands of dollars per sale. MMA plans are marketed through one-on-one meetings, very convincing seminars, and there seems to be networking in some churches. Money Merge Account Claims: Some of the claims of MMAs are: Early mortgage pay-off, superior to other early mortgage pay-off plans, and complex software necessary to manage all of the moving parts. Advocates justify the cost due to complexity and ongoing needed service. It appears that this plan does indeed work. I hope that these programs help many people to save thousands, however pay close attention to pay-off estimates and assumptions to be sure that cost savings claims are not over-estimated. Does the complexity and service justify the cost? The pay-off may indeed exceed the investment, but are there companies entering the MMA market with lower costs? If popularity of these plans grows, this may happen. Ask for full information; obtain independent advice from financial and accounting advisors as to the viability of such programs. As with all long term financial commitments, it is wise to read everything in minute detail, including refund policy if not satisfied, and ask for an explanation of anything you don’t understand. Ask for advice from legal advisors before signing a contract. You may want to obtain advice from tax advisors as to your individual tax implications, and lastly contact your state’s attorney general for information about the company you may be considering. The conclusion on Money Merge Accounts Given the current mortgage crisis and depreciating real estate values it may be wise to approach such programs cautiously. They are probably not appropriate for everyone, including those with cash flow (living paycheck-to-paycheck) or credit problems. When it comes to making decisions always remember three things: 1. Seek advice from many people (Proverbs 15:22 “Plans fail for lack of counsel, but with many advisers they succeed)”. 2. Nothing ever purchased lives up to all of the initial hype, and 3. Pay attention to your gut instinct. Lastly, I am always concerned when multi-level marketing programs network through churches. If the programs don’t work out for some people, it could negatively affect the church. Please comment if: you are aware of companies entering the MMA market with lower costs, or if you know of any independent consumer magazines or accounting firms who have fully audited the computations and published the full results. It would also be good to hear from users of such programs as to the level of service and results they have received. | 
