The Money Merge Account – How It Works

There are 3 components to the MMA.

1. A Home Equity Line of Credit (HELOC)
   
2. The Money Merge Account software
   
3. Your first mortgage

In the example on the Home page, we saw that a $200,000 loan will cost $231,676 in interest alone. However, if we were to apply a $5,000 payment on the very first day of that loan, it would actually cancel $23,304 of interest.

Don't apply $5,000	Apply $5,000
Balance: $200,000 Total Interest: $231,676	Balance: $200,000 - $5,000 = $195,000 Total Interest: $208,372
Total Savings: $0	Total Savings: $23,304

The point is this: due to the nature of home loans, any payments made towards the loan's principle balance will have exponentially large effects on the total cost of the loan. But most of us don't have $5,000 to plop down into our first mortgage. And that's where the Money Merge Account comes in.

In a nutshell, the program leverages the banks money (the HELOC) to cancel massive amounts of interest in your first mortgage. In order to do this, the software prompts the user to transfer precise amounts of money at discrete time intervals from the HELOC to the first mortgage. Think of it like using your credit card to make a payment on your mortgage. In other words, you now have a balance on your credit card (or in this case, your HELOC). This balance is quickly paid off, however, by using your HELOC as your primary checking/savings account: whenever you receive a paycheck or any other type of income, it is deposited into the HELOC account (for more detail on this, check out our Home Equity Secrets section). In this way the HELOC balance is paid down to it's initial balance, at which point the cycle repeats itself. Over time, this process rapidly reduces the balance on your first mortgage, saving you tens or hundreds of thousands of dollars in interest.

Let's take a look at how the Money Merge Account program works using something you're already familiar with: a car. More specifically, one of those nifty new cars that includes a navigation system. Using this car-analogy, we're going to take a road trip to Disneyland.

Your HELOC is the car

Your car is the vehicle that takes you from wherever you're at to Disneyland. The HELOC does the same thing: it is the tool that drives you from your current mortgage balance to a zero mortgage balance.

The MMA software is the navigation system

The car's navigation system tells you when and where to turn, allowing you to arrive at your destination as quickly as possible. Without it, no doubt you'd eventually arrive at Disneyland, but it would take you a lot longer to get there than if you had used the navigation system.

The MMA software works the same way by telling you down to the day and penny exactly what to do and when to do it.

The balance on your HELOC is the fuel in the car

For your car to be a useful tool in getting you from A to B, it needs fuel. Without gas, it might as well be a cardboard box. Obviously, you will consume gas during your trip, and when this happens you'll need to refill your tank.

As you use the MMA software you will "consume" your HELOC's available credit and your balance will rise. In order to keep the system running, you must pay that balance back down. This is quickly done by using the HELOC as your primary checking/savings account.

You are the driver

In both cases, you ultimately control the outcome. Your navigation system will tell you when and where to turn, but unless you follow those instructions you'll never reach Disneyland. Similarly, the MMA places you in the driver's seat. Follow the system and you'll reach your destination.

The purpose of driving to Disneyland is not simply to arrive at Disneyland. It's to enjoy the rides and attractions.

In much the same way, the purpose of the MMA program is not to pay off your mortgage. It's to help you achieve financial freedom.

Fill out the analysis form now to see what the program can do for you.