payoff your mortgage early
DESCRIPTION
http://skmetropolis.designingfutures.tv/ Pay off your mortage early without refinancing or change your current life styleTRANSCRIPT
• Parent company is Accelerated Equity & Development in Draper, Utah
• Highly successful mortgage company for over 10 years
• Invested over $2,000,000 & 2 years developing the MMA software program
• Tested the MMA software program with 400 homeowners in the Denver, Colorado area
• Results: After 2 years 97.6% are actively using the MMA software, and are 20-25% ahead of their original projections
Australians pay $100,000 - $150,000 less in interest on their mortgages
than do we Americans.
Asher Institute FindingsHistorical Overview• Banks financed 20% of home / 5-7 year
balloon • 15 year Term introduced• 30-year term was designed specifically
for people who couldn’t qualify for a 15-year term
• 30-year punished them severally due to way loan amortizes
• Lenders and consumers focus on Low Fixed Rates and Low Fixed Payments
Comparison
Investment Possibilities
Three Components of an MMA
1. Your 1st Mortgage
2. Advanced Line of Credit (ALOC)
3. MMA Software & Web Site
Component #1
1. Your 1st Mortgage
Closed-End Loan:The bank will ONLY apply monies once a month to this type of loan and will only apply a full payment to adjust principal balance
Component #1 -Your 1st Mortgage
Closed-End Loan
$200,000 Principal loan amount
6% Interest
$ 1,199 Monthly payment
x 360 Months (30 year loan)
$431,677 Total repayment
-$200,000 Principal loan amount
$231,677 Total interest paid
Principal Interest Balance Equity Paid
Month 1
Month 2
Year 1
Year 5
Year 10
Year 21
Year 30
$199.10 $1,000.00
$200.10 $999.00
$210.33 $988.77 $197,543 $2,457 $14,389
$267.22 $931.88 $186,108 $13,891 $71,946
$360.44 $838.66 $167,371 $32,628 $143,891
$696.23 $502.89 $99,877 $100,123 $302,173
$200,000 Principal Balance6% Interest Rate
$1,199.10 Monthly Payment
$431,677
Prepayment Savings Example
$195,000 New principal loan balance
6% Interest rate
$ 1,199 Monthly payment
337 Months (23 Months Saved)
$231,677 Original interest paid
$203,373 New interest paid
$ 28,304
-$ 5,000 Additional principal payment
$ 23,304 Total Savings
How can I pay my home off early?
Conventional Banking• Refinance to a lower interest rate• Apply additional money to each payment• Bi-weekly payment
Money Merge Account system• No refinancing necessary of your 1st mortgage• No alteration to your current standard of living
Component #2
2. Advanced Line of Credit (ALOC)
Open-End LoanThe Bank will apply money to this type of loan when received and adjust principal balance multiple times per month.
Component #2 -ALOC
If you have any kind of debt, you should NOT have your money stagnating in a checking or savings account!
Checking
Savings
Create an
Interest Cancellation Account
= “Spending Account” Money goes in and out, but little or no interest is earned.
= “Safety Net” – Money is moved here in case we run into hard times. We usually earn 1 – 2% interest on this account.
What is an interest cancellation account?
• Have you ever charged a balance on your credit card?– What was the interest rate on that credit card?
• What if you paid the balance in full at the end of the month?– What would the effective interest rate be for that
exact same card?
You have just created an interest cancellation account!!!
Think Bigger…
• Can you pay your mortgage with a credit card?– Of course not.
• We need an account that will work as much like a Checking Account as possible, but still cancel interest.– A Home Equity Line of Credit (HELOC) would work!
• Unlimited check writing• Unlimited debit card usage• Access to YOUR money (and equity) 24/7• Open ended interest instead of Front loaded
interest (like on our mortgages).
***The HELOC MUST have: 1) An interest only payment option, 2) A variable interest rate, and 3) Must be “open ended”.
Money Merge Account (MMA)
HELOC Functionality• Becomes your primary checking account• Deposit all of your income into HELOC• Pay all your bills from the HELOC
Optimum Performance of HELOC• Deposit the maximum amount of money into
the Home Equity Line of Credit• Keep it in there as long as possible
$200,000
$40,000
Mo
rtg
age
HELOC
Checking
Savings
Credit Card
Revolving debt
2nd mortgage
MMA Software
$195,000
$5,000 Funds Transfer
Mo
rtg
age
$5,000
HELOC
Funds Transfer: Borrow money from your HELOC to pay down your 1st mortgage.
$195,000
Mo
rtg
age
$ 0
ALOC
- $5,000 Funds Transfer
+ $5,000 Pay Check
$ 0
Sample Family
$5,000 Monthly income-$4,000 Living expense (mortgage, car payment)
$1,000 Discretionary income
Month 1 $3,500 MMA investment
$4,000 Expenses
$7,500
$5,000 Income
$2,500 Average Monthly balance
Month 2 $4,000 Expenses
$6,500
$5,000 Income
$1,500
$20.83
$12.50
Month 3 $1,500
$4,000 Expenses
$5,500
$5,000 Income
$ 500
$3,675.77 Funds transfer
$4,175.77 Average monthly balance$34.80
Interest Cancellation
$17,249
Reduced mortgage by18 months
Principal Interest Balance
Remaining
Payments
Month 1 199.10 1,000.00 199,800.90 359
Month 2 200.10 999.00 199,600.80 358
Month 3 201.10 998.00 195,723.93 339
Month 4 220.48 978.62 195,503.45 338
Month 5
`̀Principal Jump
3 month total
$68.13
$220.48
$201.10
$ 19.38
Month 4 $4,175.77
$4,000 Expenses
$8,175.77
$5,000 Income
$3,175.77 Average Monthly balance
Month 5 $4,000 Expenses
$7,175.77
$5,000 Income
$2,175.77
$26.46
$18.13
Month 6 $2,175.77
$4,000 Expenses
$6,175.77
$5,000 Income
$1,175.77
$2,920.23 Funds transfer
$4,096 Average monthly balance$34.13
Interest Cancellation
$12,274
Reduced mortgage by
16 months
Principal Interest Balance
Remaining
Payments
Month 4 220.48 978.62 195,503.45 338
Month 5 221.58 977.52 195,281.87 337
Month 6 222.69 976.41 192,138.94 323
Month 7 238.41 960.69 191,900.53 322
Month 8
`̀Principal Jump
6 month total
$146.85
$238.41
$222.69
$ 15.72
6 month total
Interest Cancellation
$29,523
6 month total
Reduced mortgage by
31 months
Month 7 $4,096
$4,000 Expenses
$8,096
$5,000 Income
$3,096 Average Monthly balance
Month 8 $4,000 Expenses
$7,096
$5,000 Income
$2,096
$25.80
$17.47
Month 9 $2,096
$4,000 Expenses
$6,096
$5,000 Income
$1,096
$2,917.68 Funds transfer
$4,003.68 Average monthly balance$33.36
Interest Cancellation
$11,155
Reduced mortgage by
14 months
Principal Interest Balance
Remaining
Payments
Month 7 238.41 960.69 191,900.53 322
Month 8 239.60 959.50 191,660.93 321
Month 9 240.80 958.30 188,502.45 309
Month 10 256.59 942.51 188,245.86 308
Month 11
`̀Principal Jump
9 month total
$223.48
$256.59
$240.80
$ 15.79
9 month total
Interest Cancellation
$40,678
9 month total
Reduced mortgage by
42 months
Month 10 $4,003.68
$4,000 Expenses
$8,003.68
$5,000 Income
$3,003.68 Average Monthly balance
Month 11 $4,000 Expenses
$7,003.68
$5,000 Income
$2,003.68
$25.03
$16.70
Month 12 $2,003.68
$4,000 Expenses
$6,003.68
$5,000 Income
$1,003.68
$2,917.67 Funds transfer
$3,921.35 Average monthly balance$32.68
Interest Cancellation
$ 10,184
Reduced mortgage by
14 months
Principal Interest Balance
Remaining
Payments
Month 10 256.59 942.51 188,245.86 308
Month 11 257.87 941.23 187,987.99 307
Month 12 259.16 939.94 184.811.16 295
Month 13 275.04 924.06 184,536.12 294
Month 14
`̀Principal Jump
12 month total
$297.89
$275.04
$199.10
$ 75.94
12 month total
Interest Cancellation
$50,862
12 month total
Reduced mortgage by
53 months
Loan amount: $200,000
MMA Program Conventional Program
Starting balance $200,000
Balance in 1 year:
10.4 years
$70,422
30 years
$231,677
$200,000
Balance in 5.5 years:
Repayment time
Total interest paid
Total interest savings: $167,219
$184,811 $184,752Balance in 1 year:
$197,543
Money works • 24 hours a day• 7 days a week • 365 days a year• It doesn’t take vacations• It doesn’t call in sick• It just works and works and works!
Do you have your money working for you?
~ or ~
Do you have your money working for the bank?
Component #3
3. MMA software and website Financial dashboard Financial planning Online account register Maximizes money performance 10 minutes per month to update
Component #3
-MMA Software
The MMA Website Does NOT move money Does NOT pay bills Is user friendly software Is simple to update Is a tracking tool Functions as an account register
• Wants to know how much money is coming in• Wants to know how much money is going out
Tracks your monthly budget Includes continuous customer support
Component #3 -MMA Software
•Utilities•Food•Clothing•Transportation•Entertainment
Funds Transfers How much… - If you transfer too much,
interest charges will eat you up - If you transfer too little,
not enough principal increase - Dollar amounts are different every time How often… - Frequency varies every time
True Cost
How much does that item really cost me over time……
Create A Retirement Nest Egg
• Your home is PAID OFF in 10.4 years• For the remainder of the 19.6 year mortgage• $1,199.10 per month• $1,000.00 discretionary income
6% 8% 10%
$973,000 $1,231,000 $1,575,000
10.419.630.0 years
15% - 25% ahead of written guaranteed pay off date - because the proposal is a conservative projection - because of the Report Section (people budget more)
Financial Optometry Report Option 1 Option 2
Years to pay off mortgage 10.4 30
Effective interest rate 2.085% 6%
Interest paid $70,422 $231,677
Interest saved $167,219 $0
Retirement account $1,000,000 $0
Pay off at age 50 yrs old 70 yrs old
Move forward with MMA, or keep doing what you’re doing?
For the values you entered:Principal= $410666
Interest Rate= 5.75% Amortization Period= 30 years
Starting month= Jun Starting year= 2006
Monthly Pre-payment= $0
Annual Pre-payment= $ 0.00 For Calendar Year 2018 (Year 13, 18 left)
Jan: Principal: $ 833.26 Interest: $ 1563.27 Balance: $ 325414.75 Feb: Principal: $ 837.26 Interest: $ 1559.28 Balance: $ 324577.49 Mar: Principal: $ 841.27 Interest: $ 1555.27 Balance: $ 323736.22
Apr: Principal: $ 845.30 Interest: $ 1551.24 Balance: $ 322890.92 May: Principal: $ 849.35 Interest: $ 1547.19 Balance: $ 322041.57 Jun: Principal: $ 853.42 Interest: $ 1543.12 Balance: $ 321188.15 Jul: Principal: $ 857.51 Interest: $ 1539.03 Balance: $ 320330.64 Aug: Principal: $ 861.62 Interest: $ 1534.92 Balance: $ 319469.03 Sep: Principal: $ 865.75 Interest: $ 1530.79 Balance: $ 318603.28 Oct: Principal: $ 869.89 Interest: $ 1526.64 Balance: $ 317733.39 Nov: Principal: $ 874.06 Interest: $ 1522.47 Balance: $ 316859.32 Dec: Principal: $ 878.25 Interest: $ 1518.28 Balance: $ 315981.07
FOR 2018: Interest= $ 18491.49 Principal= $ 10266.94 Balance= $ 315981.07
The MMA software analysis showed I will be paid off by
April 2018
Still owe $322,890.92
George VeronisMortgage Amortization
DVD CHAPTER 4
Testimonials
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NEXT STEPS
Run your numbers and potentially Save
Thousands of Dollars!
Thank You
BUSINESS OPPORTUNITY
MMA Software
U1stFinancial Agent Training
Corporate Training• U1st University• Live Webinars• Regional and City VIP Trainings• 9-5(MST) Toll Free Agent Support
Team Training• Daily Access to trainers• Webinars, net meeting, team training website• Local events and trainings
Independent Agent
Commission Plan
Agent Sign-up
• $175 – one-time fee paid directly to Corporate via secure online website
• Includes a welcome package with letter sized bi-fold, DVD’s, info
• Replicated website• Analysis Software Access• Course Study Material and Certification Test
Compensation Breakdown
Of the $3,500.00 fee
$1,575.00 is paid out in commission
$700.00 is paid out for Management Levels
$225.00 additional is paid out in bonus pools__________$2,500.00 total pay out
Commission Plan
New agents start at
$450 on each of 2 Training Sales$900 per sale once Trained
Branch mgr.
Director
Division mgr.
District mgr.
Sr. Associate
Associate$900
Commission Plan
Once an agent does:
5 Sales
They promote themselves to a Sr. Associate
(2 must be Personal)
$1,012 per sale
Branch mgr.
Director
Division mgr.
District mgr.
Sr. Associate$1,012
Associate $900
Commission Plan
Once an agent does:
11 cumulative sales
They promote themselves to a District mgr.(4 cumulative personal sales)
$1,125 per sale
Branch mgr.
Director
Division mgr.
District mgr.$1,125
Sr. Associate$1,012
Associate $900
Commission Plan
Once an agent does:
18 cumulative group sales
They promote themselves to a Division mgr.(7 cumulative personal sales)
$1,237 per sale
Branch mgr.
Director
Division mgr.$1,237
District mgr.$1,125
Sr. Associate$1,012
Associate $900
Commission Plan
Once an agent does:
26 cumulative group sales
They promote themselves to a Director mgr.(10 cumulative personal sales)
$1,350 per sale
Branch mgr.
Director $1,350
Division mgr.$1,237
District mgr.$1,125
Sr. Associate$1,012
Associate $900
Commission Plan
Once an agent does:
35 cumulative group sales
They promote themselves to a Branch mgr.(13 cumulative personal sales)
$1,575 per sale
Branch mgr.$1,575
Director $1,350
Division mgr.$1,237
District mgr.$1,125
Sr. Associate$1,012
Associate $900
Fast Track Program
1 Training Sale in 45 days promotes you to Sr. Associate
Or
2 Training Sales in 60 days promotes you to Sr. Associate
10 Personal and 25 cumulative sales in a rolling 90 day window promotes you to Branch Manager
Override Commission
Mary is a Sr. Associate at $1,012,she sponsors Robert who is an Associate at $900Robert makes a training sale with Mary.Robert earns $450(training sale 50%)Mary earns $450(training sale 50%) + $112($1,012-$900)Mary’s trainer is a Division Mgr. and earns $225 ($1,237-$1,012)Branch mgr. earns $338 ($1,575-$1,237)
Branch mgr.$1,575
Director $1,350Division mgr.
$1,237District mgr.
$1,125Sr. Associate
$1,012Associate $900
Management Levels
Level I Branch Manager $225
Level II Branch Manager $125
Level III Branch Manager $125
Level IV Branch Manager $75
Level V Branch Manager $75
Level VI Branch Manager $75
Bonus Pools
Personal Bonus Pool
Branch Mgr. Pool
Sr. Branch Mgr. Pool
Executive Bonus Pool
Sr. Executive Bonus Pool
3 sales per month $60
15 sales in your Branch $65
20 sales, 2 level I Branch mgrs. $40
35 sales, 4 Level I Branch mgrs.$30
75 sales, 6 Level I Branch mgrs.1-6 $30
Must re-qualify each month
Explanation on Elimination of Credit Line
Summary of How Our Program Works
First Step
Move $5,000 from Credit Line to Mortgage
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$5K
$0
Mortgage $200,000Credit Line $ 60,000
Savings
Savings of $23,000 of Interest on Mortgage
Month 1Income $5000Expenses $4000Discretionary income
$1000
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$5K
$0Credit Line Credit Line
$ 9K
$10K
$10K
$ 4K
$0 $0
Month 2Income $5000Expenses $4000Discretionary income
$1000
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$0Credit Line Credit Line
$ 8K
$10K
$10K
$ 4K
$0 $0
$ 3K
Month 3Income $5000Expenses $4000Discretionary income
$1000
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$3K
$0Credit Line Credit Line
$ 7K
$10K
$10K
$ 2K$0 $0
Month 4Income $5000Expenses $4000Discretionary income
$1000
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$ 2K$0
Credit Line Credit Line
$ 6K
$10K
$10K
$ 1K$0 $0
Month 5Income $5000Expenses $4000Discretionary income
$1000
Mortgage $195,000
Credit Line $ 5,000
Credit Line
$10K
$1K$0
Credit Line Credit Line
$ 5K
$10K
$10K
$0 $0