Product Claims it Lets You Pay off Your Mortgage in 1/3 to 1/2 the Time

You can fool some of the people all of the time, and that’s enough to make a decent living.

April 8, 2008 – Palm Coast, FL – An alert reader put me onto a rather innovative way to lure unsuspecting mortgage holders into paying lots of money for a software package that, for most people, does nothing they could not do for themselves. The product claims to allow you to pay down your mortgage in 1/3 to 1/2 the time, saving tens of thousands of dollars in interest. "You can fool some of the people all of the time, and that’s enough to make a decent living."
The system is designed for people who make more money than they spend. Here’s how it works:
  • First, buy their expensive software, which costs $3,500.
  • Take out a home equity line of credit (HELOC) in other words, a second mortgage. You will use this account to pay bills from instead of your current checking account. You’ll probably also use it to pay for the expensive software.
  • Deposit your paychecks and other income directly onto the equity account.
  • As the balance of the equity account is reduced by your payroll deposits, the "sophisticated" program will signal you on occasion to pay an additional amount from the equity account toward your mortgage principal. This will reduce future mortgage interest and shorten the pay down of the mortgage.
You can view the company’s presentation, United First Financial, at (Click Here) Allow a little time for the video to download. Listen to their 15 minute pitch. Listen closely. You will be shown what appear to be dramatic results. That’s what they want you to see. The results focus on reducing your overall future mortgage interest without explaining the cost of future HELOC interest charges. Hint: in month one of the example, the additional payment toward the mortgage principal generated by the program is $60.91, but the HELOC interest payment is $75.05. (How is that good?) Notice too that the example assumes the borrower has $1000 extra income after paying all normal expenses (including their mortgage payment, food, and entertainment). Then ask yourself the following questions:
  • If I have $1000 extra monthly income, where is it?
  • Does it make sense to open a high interest equity line of credit simply to use it to justify why I park my money there (to lower the HELOC interest)?
  • If I have extra income, why do I need a HELOC, except possibly to pay for the expensive software?
  • Wouldn’t it make more sense just to put the extra $1000 directly toward reducing the principal each month?
  • If I’m so undisciplined that I cannot put any of my extra monthly income toward the mortgage balance, how does having a HELOC help? Isn’t there a risk that my undisciplined self might run amok by spending my entire line of credit just as I’m apparently spending my all of my "extra" income?
The presentation says that there are no monthly charges (by them). However, I haven’t found a bank that will set up a HELOC to be used like a checking account without fees. This software vendor creates the NEED to open the HELOC to facilitate the smoke screen. Magicians call it deflection. Watch my right hand so you won’t notice what my left hand is doing. They compare the low monthly HELOC interest with total mortgage interest savings – not apples to oranges folks. Don’t compare the monthly HELOC interest with the cumulative monthly mortgage interest. Compare it instead to the incremental monthly decrease in mortgage interest.
It sounds complicated. It also sounds somewhat magical. That’s the smoke screen effect. Wow, I can pay my mortgage off in less than 1/2 the time and all I have to do is take out a second mortgage to pay for the software. Well if this interests you, I’ve got some great building lots for you. They’re just a short walk uphill to the beach. If the couple in the example simply applied the "discretionary" $1,000 directly to the mortgage principal, they would pay off their mortgage much more quickly than by using MoneyMerge. They would pay less interest on their mortgage. And they would save the cost of the software and the equity line interest and fees. Why put an expensive piece of software and an equity line of credit in between you and the sensible solution?
If you could benefit by buying an expensive software package that might help change your undisciplined spending habits, then this product may be for you, but I doubt it.
10 replies
  1. P Kelly
    P Kelly says:


    I had a local mortgage lender try to interest me in this software – I was never told what the cost was. It made absolutely no sense to me how adding debt could help you get debt free quicker (kind of counter intuitive, don\\’t you think?). Unofrtunately, a lot of people who should be smarter are buying that some \\\”sophisticated algorithm\\\” will magically make them have more money (or discipline).

  2. Everett
    Everett says:


    I have personally seen FIRST HAND, the power of the Money Merge Acct. When the software was introduced 400 homeowners in Denver, CO started the program several years ago as a test case. At this time all are still on the program and it is exceeding projections by more than 25%. The #1 objection to this program is that it\\’s too good to be true. Sounds like the author of the article hasn\\’t really done their homework. It works, and the cost of the software is re-couped the first time you pay down principle on the 1st mortgage. What\\’s wrong with being debt free? If you want to know the truth visit my website or call me 386.627.3386 Regards, Everett Oglesby

  3. jeff drummonds
    jeff drummonds says:

    much more to it than you initially think

    the program is somewhat hard to fully understand, and it utilizes savings through much more efficient use of your current cash flow from the time you deposit your income in your typical non-interest bearing checking accounts, up until the time you subsequently spend that money. still spending it, still making money, just re-positioning the average daily balance of your monthly cash flow so as to decrease some of your current daily interest charges on your mortgage. that is the simple part. beyond that, the average person (yes, even the average really smart person) does not truly know the nature of how mortgage interest is calculated and charged on a typical 1rst mortgage(closed end),nor do they understand how the interest charges are calculated and charged on a home equity account (open end). the banking sytem the software uses (1rst mortgage+home equity+software) is an extremely efficient system that is easy to utilize, but very sophisticated and hard to grasp even for the financially minded person. beyond that, it does actually tend to have a positive impact on the way people see their money and expenses, and it often times changes the behavoir of peoples spending habits, as well as the sloppy way we handle our stagnant cash flow. it is not for everyone, but many people (customers on the program) have very positive experiences using the program. this is more than ford vs. chevy. this is more like fuel injection vs. carburetors.

  4. John Downing
    John Downing says:

    Why are 5000 new clients every month using the Mon

    Toby, you obviously have not seen the software demonstrated and quickly jumped to conclusions based on an assumption from someone who doesn’t get it either. I would like to invite you to see this in person, the entire program so that you can have all of the facts in front of you before making statements like this. This program is helping homeowners accross the country and in Canada build equity when their is no appreciation happening right now. I will gladly spend 1 hour with you either online, via webinar or in person to show you exactly how our system works and why what you have posted is inaccurate. If you click on testamonies and go to the bottom of the page you will see three major trade publiocations endorsing and explaining the MMA. Also If you go to Borders Books you can pick up a copy of Personal Real Estate Investor Magazine and read the 15 page supplement that gave UFirst’s MMA the Editors Choice Award. Please do your homework before causing harm to peoples livelyhoods and to some homeowners only chance to get out of debt.

  5. Ron Rice
    Ron Rice says:

    Mortgage Scam

    Just do a Google search and you will find hundreds of scammers promoting this worthless software. They are the same mortgage brokers that are scrambling to find another soorce of income since they can\\\\\\’t place people in those shifty Option ARMs.

    They claim CPA and financial planners endorse their product. That is bull! If they endorse the product, they are likely selling it themselves or are in bed with the brokers who sell it.

    Any honest CPA or tax attorney will explain away the fuzzy math in seconds.

    It is totally bogus and currently under investigation by the US Attorney General and the State of Florida. Many who purchased the software are now even deeper in debt, but the brokers just shake their heads and say \\\\\\\”They didn\\\\\\’t follow the program.\\\\\\\”

  6. slafleur
    slafleur says:

    Right for some

    It has been stated that this program is not for everyone, but that it can be of benefit to some. Therefore, if it helps \\\”some\\\” people to perhaps end a cycle of mismanagement of their money and extend to them the benefit of paying off their mortgage earlier, then in hindsight, those who benefit may say, yes, the cost or fees was well worth it.

    For that reason alone, it has value. I believe the tone of this article is unecessarily negative.

    Further, why was this article only focused on one agents\\’ business as opposed to United First Financial? I am sure there are other businesses out there promoting this product for UFF. Seems to me to be very unfair to this one business to target it specifically.

    If you wish to report about this product, why do you not direct your opinions in your assessment to the \\\”developer/manufacturer\\\” so to speak,UFF, not just one of his agents, or then list ALL the agents rather than just single out one for demolition?
    I found that aspect surprising.

  7. rich
    rich says:

    Strongly Disagree

    I sincerely mean this: Mr. Toby is a nice man who normally can be trusted.

    However, he missed it here: BIG TIME. He didn’t get it this time around but I suspect in time he will. Again, he is a nice man… Just not perfect

    I use this product myself and did a great deal of homework before becoming a customer. It has more than paid for itself and I couldn’t be happier with the results.

    I sincerely ask Mr. Toby to consider just how many people he has hurt with this article.

  8. Chris Clark
    Chris Clark says:

    A real ripoff

    I get 1 or 2 brokers calling me each week trying to get me to sell this worthless product. It is a waste of money and IMO would harm a brokers reputation.

  9. Holly Cruz
    Holly Cruz says:

    Lack of Due Diligence

    I am an accountant from Jacksonville, FL. I would happily discuss the Money Merge Account with anyone who doesn’t fully understand.

    Unfortunately, it sounds like someone did not do their homework of due diligence.

    This system works! I am a client and I also recommend this system to many of my customers. There is much more to the Money Merge Account than is written in this article. The goal is to get out of debt!

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