Funding a major purchase? New car, Holiday Home, Boat etc.

Chicago’s Money Merge Account Solution

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MMA Benefits

Funding a major purchase? New car, Holiday Home, Boat etc.

By admin ⋅ January 25, 2008 ⋅ Email this information ⋅

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1. The Money Merge Account can help in a number of ways.

Depending on whether you want to build a lump sum of equity to fund a purchase, borrow the money, or do a little of both.

2. Building a lump sum.

Many mortgage programs on the market give you the chance to overpay your mortgage each month. But if you’re looking to save for a major purchase (e.g. a holiday home, a car or a boat) at the same time, you haven’t got the flexibility to do so. The Money Merge Account lets you have your cake and eat it too. It allows you to put money aside each month for the purchase and use this money to reduce your balance while you build up the lump sum. With the Money Merge Account, you’ll be able to set up a savings plan just for this. That way, the savings part of your balance can be seen separately from the rest of your Money Merge Account balance, and you can budget to build up the lump sum by the date you want.

3. Borrowing at a mortgage-style rate.

Traditionally, if you haven’t got enough saved for a major purchase like a new car, your only option is to apply for a loan. This usually means taking out an auto loan or using a credit card, many times at higher interest rates than you pay on your mortgage. The Money Merge Account can be a much cheaper way to pay, because everything is paid back at a low mortgage-style interest rate.

4. And you can set up a separate loan plan just for this.

That way you can focus on paying this part of your Money Merge Account balance off as quickly or as slowly as you want, and you can check your overall plan whenever you like.