As I continue my series on the Money Merge Account Top Twenty Questions, my experience has been that question number 15 has tended to show up more with folks on the West Coast vice other parts of the Country.  We used and potentially abused these mortgages more than some other areas I believe. 

Question number 15 is  Will the Money Merge Account system work with interest only mortgages or negative amortization mortgages?

The answer is Yes. In fact, I have been a user and believer in these mortgages for years and I would like to share my story. I have used these option ARMs on my principal residence and all of my investment properties because I like the payment options that they provide. They allow me to, depending upon cash flows, change my monthly payments as I see fit.

The pleasant benefit that I learned by using the Money Merge Account system was that my monthly mortgage payments went down! No one ever told me about that possibility. When I got my mortgages, I was told that if interest rates go up or if I do not pay more than the interest only or negative amortization amount, my monthly payment would increase. What I had not considered was, on these types of mortgages, they re-amortize on a monthly basis. So, when I send in payments to principal, the lender re-amortizes the remaining balance and adjusts the monthly mortgage payment downward, since I owe less. In the first year of using the Money Merge Account system, my mortgage payment went down by approximately $500 per month!

So, can the Money Merge Account system be used with these mortgages...not only yes, but they can help you take control of them for your own benefit.

If you have an option ARM or are paying the interest only or negative amortization amounts, it is not necessary to refinance to get out of those loans to take control of them.  If you are comfortable having a discussion to determine if the Money Merge Account system will work for you, it would be my pleasure to share everything about the system so you can make your choice.  You can contact me at jim at financialiberty dot com or you may click here to let me know.