What a simple, yet eloquent explanation from one of our readers on the read deal behind UFF’s Money Merge Account (MMA).
UFF is a SCAM.
Borrowing at 8% to cover 6% loan will make you less money.
Paying down your mortgage directly (instead of using HELOC) will put you ahead.
Simple short-term interest VS compounding long-term interest: this is just a marketing lie. HELOC uses monthly compounding interest, same as your mortgage.
The only way to pay off your mortgage faster (and to save on the interest) is to increase your monthly payments. You think that you saved thousands of dollars with UFF, but this is not true. You saved thousands of dollars by increasing your monthly payments. You’d save another 10-15% by not using UFF and simply doubling your mortgage payment.
$100,000 at 6% for 25 years = approx. $640/month
$100,000 at 6% for 7 years = approx. $1460/month
WOW! I just reduced my mortgage from 25 years to 7 years and saved thousands of dollars! UFF uneducated [people] may think that this is magic, but this is actually simple mathematical computations.