FAQ - Frequently Asked Questions

Common Questions Answered Here

Get answers to¬†some of the most frequently asked questions about the Mortgage Magic System. If you don’t see the answer to what you’re looking for, please¬†contact us¬†and we will get back to you promptly. Click each bold-faced topic to see or collapse the answers.

 

How Much Can I Save?

Savings can be VERY substantial using the Mortgage Magic System. Replacing just one year’s mortgage principal with an accelerator loan saves thousands: Here’s proof:

This is the amortization schedule for a conventional 30 year mortgage of $250,000 at 3-1/2%:

mortgage-cost-wo-mms-001

 

and here’s the same loan using the Mortgage Magic System:

mortgage-cost-wo-mms-1-001

For a full explanation, watch this video

 

Pricing: Should I Choose Full Membership or Subscription?

There are three pricing options:
Full Membership: Full Membership is a one-time payment with no annual or renewal fees. It includes 3 months of coaching to get you started, includes set-up support and training on correct use the system (very important for most clients). This is the least expensive choice as it is a one-time payment. Includes a 30 day no-questions-asked money-back guarantee.

Monthly Subscription Pro-Plan:
This is a monthly subscription (payments are automatically deducted from your payment method each month). It includes 3 months of coaching to get you started, includes set-up support and training on correct use the system. After 12 months, the cost will exceed the cost of the Full Membership. Five day free trial.

Monthly Subscription Basic Plan: This is a monthly subscription (payments are automatically deducted from your payment method each month). No support is provided with this plan. It is suitable for clients who do not require set-up support or training. It is the least expensive but most people require training and support and should not choose this plan. Five day free trial.

What’s This Got To Do With Retirement ?

The biggest reason BY FAR most people¬†don’t have enough money¬†when reaching retirement age is that they spent so much¬†money on their mortgage for 30 years. Instead of prioritizing¬†mortgage reduction, they put money into savings. That’s a big mistake. Here’s why: it’s impossible to accumulate significant¬†savings while carrying large debts – and a mortgage is the largest debt most people have. Most folks pay more in¬†mortgage interest every year than the money they earn¬†in their retirement account. By the time that mortgage is paid off, there’s not¬†enough time to salt away a enough¬†money or time for it to grow. The Mortgage Magic System can cut up to 20 years off the time to pay off your mortgage and also reduces mortgage interest. In other words – it gives you more money to save for retirement and more time to grow it.

How Does It Protect My Retirement?

Reducing interest on your mortgage is the most overlooked part of retirement planning. You cannot grow your net worth if your retirement account earns $1,000 in a given year but¬†you pay¬†$15,000 in¬†mortgage interest in that year. And that’s what happens to most people – year after year. Do you want to retire with more money? If your answer is “yes”,¬†use the Mortgage Magic System.

Why Haven’t I Heard About This?

Banks and mortgage lenders naturally don’t want you to know about mortgage acceleration, much less use it. These firms make their money by transferring risk to you, by selling you stocks, investment products, and loans. A mortgage accelerator not only reduces risk, but also provides greater investment return. Mortgage acceleration has been used around the world for over 15 years. In the United States, people are just becoming aware of it. Stock investments are included in the Mortgage Magic System (see next question), but only at the right time. Now that you know the facts of mortgage acceleration, see if anything matches it – nothing comes close.

How Does Mortgage Magic System Grow Net Worth?

Nothing comes close to how quickly net worth grows using the Mortgage Magic System. The chart shows its performance compared to other investements. One look is worth a thousand words. And, the performance¬† is GUARANTEED, because it’s based on your mortgage contract, and not subject to market fluctuation.

Mortgage Accelerator VS. IRA

investment_performance
Chart shows how quickly net worth grows using the Mortgage Magic System compared to a typical retirement  account. Apples to apples comparison, with $3,000 invested annually earning 6% compared to a 6% mortgage. A retirement plan that starts with the Mortgage Magic System provides FAR more money for retirement. Chart shows what an IRA or 401K would have to earn, dollar for dollar, by comparison. Example shown for typical $300,000 mortgage at 6%. Any other investment would have to earn 600% in year 1 to match the Mortgage Magic System. No other investment plan compares for building your wealth.

Will This Really Work For Me?

The system is based on exact formulas. Your results are predictable, and based on the same arithmetic that banks use. You can see your results as a monthly cash flow summary. Even show them to your financial advisor. Imagine – a system that keeps the roof over your head for tens or hundreds of thousands of dollars less and also maximizes your retirement funds!¬† You will be able to actually retire when you reach normal retirement age. Statistics show the average American has just $60,000 when they reach retirement age. Can you retire on $60,000?¬†It’s not “too good to be true”. You just haven’t been taught about finances this way. Follow the Mortgage Magic System‚ĄĘ – it works!

How Do I Use It?

 It is not necessary to refinance your existing mortgage.

 There are basically two ways to go: using your own funds, or using a revolving line of credit. Our System supports both. Here are the key points of each:

 Using your own funds: when you have saved a predetermined amount of money, you transfer it to your mortgage to pay down principal. This is akin to investing your savings in your mortgage. Your money earns a tax-free return equal to the mortgage interest rate. So, if you have a 6% mortgage, your savings earn 6%, tax-free.

¬†Using a revolving line of credit: this has the effect of combining your mortgage account with your checking account. Each time you make a deposit into the credit line, it reduces the mortgage balance. By reducing the average daily balance, less interest accrues for the period: result: less of your monthly payment is for interest, with more going to reduce principal. The benefit here is that you are using the bank’s money to reduce your mortgage!¬†¬†Don’t get too hung up on the method or arithmetic: you can even change from one method to the other. The key is that

each dollar you invest in the accelerator cancels many times its value in mortgage payments.

Do I Need A HELOC?

You can¬†use either a HELOC or an overdraft line of credit together with your regular checking account. The overdraft line is convenient and works well, as long as the bank doesn’t charge extra fees. You can also¬†use¬†the revolving credit features of a credit card account, providing the card doesn’t charge unreasonable fees.¬†If you are unsure which way to go, contact us for a consultation.

Do I Need A Large Credit Line?

 Not at all. The amount of credit used is between $1,000 and up to a maximum of 2 times your monthly income. For example, a homeowner earning $6,000 per month will not use more than a $12,000 of credit. But remember, you can use as little as $1,000.

Note: We do NOT advocate replacing your mortgage with a HELOC or other line of credit. That is specifically not a part of anything in our system. We specifically advise that the line of credit used shall NEVER be more than 2 times your monthly income.

Is My Information Secure?

All financial information entered is anonymous; and you never enter an account number. We do not share or sell information with third parties.

What’s Included?

 

  • Proprietary financial software that provides long-term guidance.
  • Real time reports of transfer dates and amount.
  • Real time reports of savings realized and projected.
  • Monthly Analytic Section that tracks your progress.
  • Monthly emails and timely messages provide information and ongoing guidance.
  • Our guarantee the System accurately projects your savings and outcome.

Can I Download The Software To My Computer?

The Mortgage Magic System‚ĄĘ is a web-based product, and is accessed directly from our server using a login name and password. By maintaining it on our server, we can send timely notices when your financial plan should be updated. For example, when a credit card is paid down, we can send a notice to update to the next roll-down.

Do You Provide Support?

Support is provided¬†via an optional support package called “Quick Start”. Our personalized support service is tailored to each individual user, and is billed separately.

Do I Need To Reconcile The System With My Checkbook?

No. Mortgage Magic System‚ĄĘ does not require any time-consuming reconciling with your checkbook and you do not make item by item daily entries.

Does It Tell Me When To Transfer Funds To My Mortgage?

Yes. The Mortgage Magic System‚ĄĘ software will show when transfers should be made from the mortgage checking account to your primary mortgage account. The transfers are not monthly, as many people think. The timing is variable and based upon your particular finances. For most¬† people, transfers are made only once or twice each year.