Money Merge Account Math Example:

The following math example is derived from the Money Merge Account overview video presentation as provided by United First Financial. To watch the video, click here and use the link on the bottom of the page entitled "Money Merge Account Overview". United First Financial has requested that we not link directly to the video from independent web sites.

These examples are offered as a courtesy only. Individual results will vary based on each persons specific financial situation and their ability to follow the Money Merge Account program. To find out how the Money Merge Account program will work specifically for you, request your own analysis using the links below or by filling out the form at the end of the presentation video. Also, if you have questions or would like to join one of our live web presentations, which include the Money Merge Account program, click on the "Event Calendar" link.

Month	Expenses	Income	Funds Transfer From ALOC	ALOC Month Ending Balance	ALOC Average Daily Balance	ALOC Interest
1	$4,000.00	$5,000.00	$11,983.86	$10,983.86	$10,617.73	$75.05
2	$4,000.00	$5,000.00	0	$10,058.91	$10,091.71	$73.71
3	$4,000.00	$5,000.00	0	$9,132.02	$9,164.88	$66.94
4	$4,000.00	$5,000.00	$2,784.30	$10,983.86	$10,922.33	$74.63
5	$4,000.00	$5,000.00	0	$10,058.49	$10,090.75	$73.70
6	$4,000.00	$5,000.00	0	$9,132.19	$9,165.62	$64.79
7	$4,000.00	$5,000.00	$2,786.88	$10,983.86	$10,926.22	$79.81
8	$4,000.00	$5,000.00	0	$10,063.67	$10,097.00	$71.37
9	$4,000.00	$5,000.00	0	$9,135.04	$9,167.30	$66.96
10	$4,000.00	$5,000.00	$2781.86	$10,983.86	$10,983.86	$79.81
11	$4,000.00	$5,000.00	0	$10,063.67	$10,097.00	$71.37
12	$4,000.00	$5,000.00	0	$9,135.04	$9,167.30	$66.96
Totals			$20,336.90	$9,135.04		$865.10

As a result of using the Money Merge Account program, this example client has achieved the following results through the first 12 months:

• Beginning Balance on 1^st Position Mortgage was $200,000.00
• Ending Balance on 1^st Position Mortgage is $176,319.65.
• Ending Balance on ALOC is $9,167.30.
• Total Combined Loan Balances at the end of the first year is $185,486.95 ($176,319.65 + $9,167.30 = $185,486.95)
• Total Interest Paid on ALOC was $865.10.
• Total Future Interest that can never be charged on the 1^st position mortgage is $77,524.00
• Months remaining on 1^st Position Mortgage is 267 (total # of payments are 279)

Some people who don't understand the mechanics of the Money Merge Account program argue that the system has you transfer all of your discretionary income to your primary mortgage which one could easily do on their own.  As we can see above, that is simply not the case. In the first year of this example, the 1^st Position Mortgage principle balance was reduced by $20,336.90, or $8,336.90 more than the $12,000 of discretionary monies this client had. 

How could that be possible?  What really happened is the software used its advanced math engine to create leverage on this client's real-time income, expenses and discretionary monies.  This leverage was used to minimize future mortgage interest. The reduction in principle balance on the first mortgage came from transferring closed-end debt (held in a long-term 30 year note) to open-ended debt (held in a short-term instrument), where the interest rate could then be minimized on a daily basis.  These "Funds Transfers" were then paid down using a portion of the discretionary income.  It should also be noted that in this example UFirst has purposefully shown a worst case scenario for the interest this client will pay on the ALOC.  This example assumes this client pays all of their bills and deposits all of their income on the same day, which is the first day of each month.  This assumes the least amount of benefit possible from the "interest cancellation" effect. 

If we compare the above example to the one below, where all of the discretionary monies ($1,000.00 each month) are paid toward the 1st position mortgage, we find the following:

• Beginning Balance on 1^st Position Mortgage was $200,000.00
• Total of additional principle payments made to the 1st position mortgage was $12,000.00
• Ending Balance on 1^st Position Mortgage is $185,208.41 at the end of the first year.
• Total Future Interest that can never be charged on the 1^st position mortgage is $49,552.64
• Months remaining on 1^st Position Mortgage at the end of the first year is 297 (total # of payments is 309).

Comparing the two examples we find that the Money Merge Account client is 30 months ahead in mortgage payoff (279 total payments vs. 309 total payments) and has already canceled $27,106.26 more in future interest by using the Money Merge Account service.

$77,524.00 - $865.10 - $49,552.64=$27,106.26

This is true even though the Money Merge Account client has paid a total of $278.54 less in principle debt.  Here is a basic explanation of why.  It's called effective interest rate.  On a 30 year mortgage, the interest rate (in this case 6%) is really only that interest rate if each loan payment is made on time and the loan is carried for the full term.  On the other hand, by using the ALOC the effective interest rate can be minimized each day our money is sitting in our ALOC waiting to be spent.  In the example, the Money Merge Account client transferred $20,336.90 of mortgage debt to the ALOC but only paid $856.10 in interest.  Because of the interest cancellation effect, they paid an effective interest rate of 4.25%.

To achieve these results, the Money Merge Account client lived life as they normally would, with the exception of telling the software once a month how much money was deposited (payments) into the line of credit and how much was spent (withdrawals) from the line of credit.  They also followed occasional prompts from the software which directed them when to do the “funds transfer” and how much each transfer should be, which maximized the power of their money.

If you'd like to see if you qualify and exactly how the Money Merge Account system can benefit you, request your own analysis. It's FREE and comes with NO OBLIGATION. It will show you a worst case scenario of the exact month and year when your mortgage and all other debts you list could be paid off. The report even tells you how much mortgage interest you'll save (to the penny). There are three ways to get your FREE NO OBLIGATION analysis.

A) You can download and print a Money Merge Account Worksheet, fill it out, and fax it to us Toll Free at 1-888-332-8334;

B) You can complete an on-line request via our secure web form; or

C) You can use the good old telephone and call us on our TOLL FREE number at 1-888-DebtEdge (332-8334).

Our office hours are from 8:00 AM to 8:00 PM Pacific time, Monday - Saturday.

The only information needed is your property information, income, liabilities (balance and payment amounts on your mortgage, credit cards, vehicles, etc.) and your discretionary income (what you have at the end of each month, if any, that's not always spent). By gathering only that information we can analyze exactly whether or not this program will benefit you and whether or not you qualify for it. If you do qualify to use the Money Merge Account system, there are some additional documents which United First Financial requires to set your software up for you. To see the additional documentation that will be needed to activate your Money Merge Account program, click here.