Be mortgage-free in less than half the time…really?

July 9, 2007 at 12:08 pm 4 comments

United First Financial is a fairly new MLM (multi-level marketing business) that claims to help people pay off their homes in half the time. I’m sure it works most of the time and sounds like a great idea, but there’s a catch. 3,500 of them. That’s right. It costs $3,500 to purchase propietary software that ‘helps’ you pay off your mortgage.

How it works?

  1. United First Financial is a MLM, meaning they recruit people to recruit people to recruit people.
  2. Every one pays $3,500 to get the software, Money Merge Account (MMA), and make commission every time someone buys it.
  3. You then get a ALOC (Advanced Line of Credit) that is used to ‘drive’ the system.
  4. The MMA system is tied to your bank account, and your primary mortgage. When deposits are made to your bank, the money is then put towards your mortgage.
  5. The formula in the MMA system re-formulates each time the balance in your account changes, for example, when you pay other bills or have other expenses.
  6. The extra money is put towards your principal, therefore reducing the length of the mortgage.

The pros?

  1. It helps people pay off their mortgages early.
  2. Creates large principal payments.
  3. Get people on a budget.

The cons

  1. You don’t need $3,500 software to pay off your home early. Extra principal payments can be made without paying thousands.
  2. It does change your spending habits. United First Financial claims that their average customer makes progress “with little change to their day-to-day spending habits.” The math process doesn’t change. You still need to cut back to make the extra principal payments.
  3. An ALOC is no different than a HELOC. It’s simply a line of credit that is ‘can’ be used for debt consolidation, major purchases, tuition, etc.

Related links:
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Entry filed under: Debt, Money Fun, Real Estate and Mortgages.

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4 Comments Add your own

  • 1. BC  |  July 10, 2007 at 12:08 pm

    Umm…why do you need $3500 software to make extra payments on your mortgage? all you need is a checkbook and a stamp. Here’s an idea…take that 3500…and put it towards you mortgage!

  • 2. chaka42  |  July 10, 2007 at 1:06 pm

    That’s the idea.

  • […] Be mortgage-free in less than half the time…really? […]

  • 4. mortgagefreematt  |  March 22, 2010 at 11:40 am

    This is crazy. Strongly advise you not to touch it with a barge poll. Only way to pay down that mortgage is by sorting out you debt and working harder/smarter to generate extra income. It can be done…


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