Don't Fall for This Mortgage Pitch
Prepay your home loan yourself and skip the $3,500 software fee.
You may have received e-mails touting a system that promises to help you pay off your mortgage early. This mortgage-acceleration package -- which includes a software program -- relies heavily on the use of a home-equity line of credit. The software analyzes your financial data to reveal when and how much extra you should prepay.
The Money Merge Account system, sold by United First Financial, costs $3,500. For the price, you may also receive a recruiting pitch. United First is a multilevel marketer that encourages salespeople to bring others aboard, passing the profit up the food chain.
With or without expensive software, the fact is that the more discretionary income you can commit to prepayment, the quicker the mortgage becomes history. We suggest you keep your $3,500 and do it yourself without having to fend off a pushy salesperson.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For example, divide your monthly payment by 12 and pay that much extra each month. Doing so would allow a homeowner with a $230,000 mortgage at 6% to cut about 5.5 years off a 30-year mortgage (see our How Advantageous are Extra Payments? calculator).
Is prepaying your mortgage even a good idea? That depends on whether you have better things to do with spare cash. You could create a reserve fund so that you don't have to borrow in an emergency or stash the money in a tax-deferred college- or retirement-savings account.
Salespeople challenge whether you'll follow through on your own -- as if spending $3,500 for software will ensure that you'll use it. Tell that to couch potatoes whose high-end exercise equipment gathers dust.
-
Countries That Will Pay You to Move: Cash Grants, Incentives and What to KnowExplore real relocation incentives — from cash grants and tax breaks to startup funding — that make moving abroad or to smaller towns more affordable and rewarding.
-
Mortgage Protection Insurance: What It Covers and When It Makes SenseHow mortgage protection insurance works, what it costs, and when it’s actually useful in a financial plan.
-
How to Use Your Health Savings Account in RetirementStrategic saving and investing of HSA funds during your working years can unlock the full potential of these accounts to cover healthcare costs and more in retirement.
-
9 Types of Insurance You Probably Don't NeedFinancial Planning If you're paying for these types of insurance, you may be wasting your money. Here's what you need to know.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage RatesLuxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
