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Money Merge Account (MMA) Three Components of an MMA 1. Your 1 st Mortgage 2. Advanced Line of Credit (ALOC) 3. MMA Software & Web Site.

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Presentation on theme: "Money Merge Account (MMA) Three Components of an MMA 1. Your 1 st Mortgage 2. Advanced Line of Credit (ALOC) 3. MMA Software & Web Site."— Presentation transcript:

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2 Money Merge Account (MMA) Three Components of an MMA 1. Your 1 st Mortgage 2. Advanced Line of Credit (ALOC) 3. MMA Software & Web Site

3 Money Merge Account (MMA) Component #1 1.Your 1 st Mortgage Closed End Loan The Bank will ONLY apply monies once a month to this type of loan and will only apply a full payment to adjust principal balance

4 Money Merge Account (MMA) Closed End Loan $200,000 Principal loan amount 6% Interest $ 1,199 Monthly payment X 360 Months (30 year loan) $431,677 Total of payments -$200,000 Principal loan amount $231,677 Total interest paid

5 Money Merge Account (MMA) $1,199First monthly payment $5,000Additional principal payment $6,199Total first payment Conventional Banking Refinance to lower interest rate Apply more money to principal

6 Money Merge Account (MMA) $195,000New principal loan balance 6%Interest rate $ 1,199Monthly payment 359Months $231,677Original interest paid $208,373 New interest paid $ 23,304 -$ 5,000Additional principal payment $ 18,304 Savings! (Payoff Reduction 1.11 yrs)

7 Money Merge Account (MMA) $5,000Monthly income -$4,000Living expense (mortgage, car payment) $1,000Discretionary income MMA System No refinancing necessary No alteration to current cash flow

8 Money Merge Account (MMA) MMA Initial Financial Analysis Property value Original and current principal balances of mortgage and other debits Current Income & Discretionary Income Analysis reveals MMA could decrease your scheduled interest by $165,335 !! 1st mortgage and the listed debts will be paid off without adjusting your living expenses in 11.3 years. (Payoff reduction time of 18.1 yrs)

9 Money Merge Account (MMA) Component #2 1.Your 1 st mortgage 2.Advanced Line of Credit (ALOC) Open End Loan The Bank will apply money to this type of loan when received and adjust principal balance multiple times per month.

10 Money Merge Account (MMA) Understanding an Advanced Line of Credit This is not a savings account This is the vehicle - tool that drives the vehicle is the MMA software You cannot deposit more than the balance $60,000Line of Credit available (ALOC)

11 Money Merge Account (MMA) Optimum Performance of ALOC Deposit maximum amount of money into the line of credit per month Allow to sit in there as long as possible Least amount spent by the end of each month ALOC Functionality Functions as a primary checking account Deposit all of your income into ALOC Ability to pay all bills using ALOC

12 Money Merge Account (MMA) Component #3 1.Your 1 st mortgage 2.Simple interest, ALOC MMA software, web site Financial Dashboard Financial planning Online account register Maximizes money performance 10 minutes per month to update

13 Money Merge Account (MMA) Month 1 $60,000Line of Credit available (ALOC) -$3,500MMA one time fee -$4,000Living expenses -$7,500Balance owed $5,000Paycheck -$2,500New balance owed The bank can only charge interest on the $2,500

14 Money Merge Account (MMA) Month 1 Start balance -$3,500 Ending balance -$2,500 You have never made a scheduled monthly payment Your income represented your monthly payment -$7,500 Money borrowed from ALOC -$2,500 Balance bank charges interest on

15 Money Merge Account (MMA) You paid NO interest on the $4,000 you used to pay your living expenses *Consult your tax advisor. Your ALOC became an Interest Cancellation Account Tax deductible*

16 Money Merge Account (MMA) Closed End Loan Eliminated interest Controlled your money, so your money didnt control you Got your money working for you, instead of it working for the bank! Open End Loan Income forced adjustment to principal balance Interest Cancellation Account

17 Money Merge Account (MMA) Web site / Software Does NOT move money Does NOT pay bills User friendly software = Simplicity when updating each month Tracking tool Functions as an account register – Wants to know how much money is coming in – Wants to know how much money is going out Tracks your monthly budget Continuous Customer Support

18 Utilities Food Clothing Transportation Entertainment Car Payment CC Payment Bank Loan

19 Money Merge Account (MMA) Equity Transfer / Interest Cancellation -$ 2,500Balance owed -$ 5,000Pay down 1 st mortgage -$ 4,000Living expenses -$11,500New balance owed Equity Transfer / Interest Cancellation -$11,500Balance owed $ 5,000Deposit Income -$ 6,500New balance owed The bank can only charge interest on the $6,500

20 Money Merge Account (MMA) Month 2 Start balance-$ 2,500 Borrowed Additional-$ 9,000 Deposited-$ 5,000 End balance-$ 6,500 You have not made a scheduled monthly payment because the income deposited represented your monthly payment -$11,500 Money borrowed from ALOC -$6,500 Balance bank charges interest on

21 Money Merge Account (MMA) You paid NO interest on the $5,000 you used to buy down the principal balance on your primary mortgage You traded $23,304 of Closed End Interest charges, for the Open End finance charge on $6,500 (Even with a high variable apr of 18.82% - less than $102 charge.) That is the magic of the MMA

22 Money Merge Account (MMA) - Real Client - Action Plan

23 Money Merge Account (MMA) - Real Client - ALOC Balance

24 Money Merge Account (MMA) - Real Client -1st Mortgage Pay In as Xtra Principal Discretionary Income is ONLY: $ Per Month x 12 4, With MMA Software 135, , , Prin Pd & Discretionary $$ used for other things Regular Schedule: 135, , , Prin Pd Regular Schedule: Increase With MMA Software Increase 2/1/2005 $136,058.76

25 Money Merge Account (MMA) Total interest savings: $89,566 Comparison Balance in 1 year: $126,032 $136,058 Starting balance Conventional Program MMA Program Balance in 4.7 years: $126,193 $136,058 Total interest paid Repayment time $45, years $134, years

26 Money Merge Account (MMA) Her home is paid off in 11.9 years, plus… If she invests the available $ per month for the remainder of the term which is 18.3 years she could realize a potential nest egg of: 4% $299, % $324, % $351,786.03

27 Sample Mortgage # 1 Original Mortgage Balance Original Mortgage Term Original Interest Rate Original Mortgage Type Monthly Mortgage Payment Full Term Interest Would Pay Consumer learns of MMA __yrs into the Term Consumer has already Paid this much Interest Current Principal Balance at this point is The Remaining Term is The Current Market Value is Consumer's Discretionary Income is Consumer Requests Financial Analysis - Results Are: Can potentially payoff Mortgage AND Other Debt in = an Early Payoff by Can potentially save in Interest $800, yrs (360 mos) 6% Fixed $4, $926, yrs (36 mos) $141, $768, yrs (324 mos) $1,000, $1, yrs (169 mos) 12.9 yrs (153 mos $433, ** Success depends solely on each individual's variable circumstances, self-discipline, and consistency **

28 Sample Mortgage # 2 Original Mortgage Balance Original Mortgage Term Original Interest Rate Original Mortgage Type Monthly Mortgage Payment Full Term Interest Would Pay Consumer learns of MMA __yrs into the Term Consumer has already Paid this much Interest Current Principal Balance at this point is The Remaining Term is The Current Market Value is Consumer's Discretionary Income is Consumer Requests Financial Analysis - Results Are: Can potentially payoff Mortgage AND Other Debt in = an Early Payoff by Can potentially save in Interest $200, yrs (360 mos) 6% Fixed $1, $231, yrs (24 mos) $23, $194, yrs (336 mos) $260, $ yrs (177 mos) 13.2 yrs (159 mos $128, ** Success depends solely on each individual's variable circumstances, self-discipline, and consistency **

29 Money Merge Account (MMA) Get YOUR Financial Analysis Today! See how early you could pay off your mortgage PLUS your other debt too See how much interest you could SAVE Learn how YOU can maximize the performance of YOUR money Gather up your statements and Click HereClick Here


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