Yesterday I wrote about my research on a multi-level marketing company called United First Financial. My problem with the company is not that what they’re selling isn’t good or doesn’t help people. The plan can help people pay down their debt faster. I just don’t believe handing over $3,500 for something you can get for far, far less makes sense.
The banking product utilized (mortgage accelerator loans) is available to consumers without this big fee. For a few hundred bucks up front, plus a very small annual fee (less than $100), you can get this product from a bank or mortgage lender. No need to shell out $3,500 up front!
And the computer software that UFF lets you use for the $3,500? It’s a complete waste of money. It’s nothing more than a fancy spreadsheet that tells you which debts to apply extra money to. With a little bit of financial education, when you have extra money, you’ll know exactly which debt to apply it to… no $3,500 fee necessary.
I’m into providing value, so I’m going to show you how to pay off your 30 year mortgage 19 months early. And I’m not going to charge you a cent (unlike United First Financial). Here we go…
You have a 30 year mortgage with a balance of $200,000 and an interest rate of 6.5%. Your monthly payment is $1,264, and you will pay it off in exactly 30 years. Over that 30 year period, you’ll pay about $255,000 in interest on that loan.
To save almost $20,000: Take the $3,500 you were planning on paying United First Financial. Pay it to your mortgage company as an additional payment right now. You will pay off your $200,000 mortgage 19 months early. Over the 30 year period, you will save $19,714 in interest. No catch. No big up front fee. Free money for you because of my free advice here.
Add to that the mortgage accelerator product you can get for a pittance from a bank (mentioned above) and if you use it correctly, you could save even more in interest. And you still don’t have to pay anyone $3,500 to do it!