First, let us get these statements out of the way before we tackle this issue: Money Merge Accounts (or Mortgage Accelerators) are real. But the more important question is “do they work?” The answer to that is “yes.” But, here is where there is a great divide on the philosophy about these systems: You can do the same thing that these programs purportedly do only you will not have to pay between $2,000 and $6,000 for a fancy program.
The chief opposition to that statement is that most people will not and do not have the discipline to make extra payments on their mortgage, so this program sets them up to pay off their mortgage sooner and save money on interest, while putting their finances on ‘autopilot.’
Here’s the relevant question for those who are pushing a MMA: Is the purpose of this program to save money on your mortgage interest or is it to create discipline on the part of the individual? If it is to save money on interest, again, you can do that on your own. If it is to create discipline, that can be accomplished without spending ANY money. So the MMA provides no advantage on either point.
Keep these issues in mind when being hounded by those who (with good intentions) are attempting to get you into this type of program.
- These programs are not free and they do not save money in a manner that would make it worth the costs that are required to enter the program.
- Most of these programs require you to have a HELOC (Home Equity Line of credit) which brings with it additional problems and costs.
- Consider that paying off your mortgage faster/sooner might not be the best use of your money.
Finally, if you are looking for an automatic way of paying your mortgage every month, or bi-weekly, that can be arranged by having your paycheck auto-deposited into a bank account which allows you to set up a bill scheduling and payment plan in order to make your payments for you. Using this technique, you can make that extra payment every year and never have to raise a finger to make it happen.
There are many tools and options available for those who want to use them other than paying a very high amount of money just to get into a fancy bill payment system that is demonstrably not better than just using your own resources and common sense. Let the comments on this issue begin.