This document discusses compound interest over the course of a 30-year mortgage. It shows the breakdown of principal, interest, and balance owed monthly and yearly. It illustrates that with a $200,000 loan at 6% interest, the total repayment would be $431,677, with $231,677 of that being interest paid. The document notes that compound interest, also called the "eighth wonder of the world," can significantly increase the total cost of loans over time if interest is allowed to compound. It emphasizes the importance of making prepayments or paying off principal early to reduce the total interest paid over the life of the loan.

3. A Paradigm Shift

4. $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

6. $200,000 Principal Balance
6% Interest Rate
30 Years
$1,199.10 Monthly Payment
Principal Interest Balance Equity Paid
Month 1 $199.10 $1,000
Month 2 $200.10 $999
Year 1 $210.33 $988.77 $197,543 $2,457 $14,389
Year 5 $267.22 $931.88 $186,108 $13,891 $71,946
Year 10 $360.44 $838.66 $167,371 $32,628 $143,891
Year 21 $696.23 $502.89 $99,877 $100,123 $302,173
$431,677
Year 30
$231,677!!!

7. Called Compound Interest:
“The 8th wonder of the World”
Equation to Compound Interest
P=L[c(1+c)n] / [(1+c)n-1]
There are two types
of people in this
world: those who
pay interest, those
Albert Einstein
who earn interest.

8. Prepayment of Principal
I/we have the right to make payments of principal at any time
before they are due. A payment of principal only is known as
a "prepayment."
When I/we make a prepayment, I/we will tell the Note Holder
in writing that I/we am doing so.
I/we may make full prepayment or partial prepayments
In January you pay $1199.10 leaving the
without paying any prepayment charge. The Note Holder will
use all of my/our prepayments onreduce the amount of
Primary Balance to your Mortgage
principal that I/we owe $199,800.90 If I/we make a partial
under this Note.
prepayment, there will be no changes in the due date or in
the amount of my/our monthly payment unless the Note
Holder agrees in writing to those changes.
Remember the Borrower’s Right to Prepay!

9. Prepayment of Principal
What if you sent 3 months of Principal
equaling $603.30
We would start February on line five,
Saving 3 Months of Payments!
Remember the Borrowers Right to Prepay!

10. Prepayment of Principal
$603.30 added to your
Principal will save you
$2,994.00!
Remember the Borrower’s Right to Prepay!

11. Prepayment of Principal
At the end of your first year you have paid off $2,456.01
And the bank only charged you $11,933.19 to do it!
What if you paid the balance on the
Principal Amount for month 12,
totaling $2,456.

12. Prepayment of Principal
Your next payment will be on month 13 and you would save 11 months of
payments.
The $2,456.01 will save you $11,933.19

13. How Would You Pay This Off?
theBANK
$226,183
$42,296
6.5%
6.75%
$21,538 Mortgage
$27,753 Auto Loan
7% 6%
Line of Credit Trailer Loan $7,753
Balance $4,309
6.125%
6.125% ATV Loan
Furniture

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Demo

17. Debt Free Faster
maMoney Merge Conventional Program
Account Program
Starting Balance $141,804.99 $141,804.99
$125,390.82 $132,891.21
Balance in 1 year Balance in 1 year
Repayment Time 7 years 27.8 years
Total Interest Paid $45,782.60 $170,843.14
$125,060.54 Total Interest Saved with the
maMoney Merge Account® Program

18. So what is the monthly cost not to
be on the program?
$125,060.54 / 7 YEARS (84 MONTHS) =
$1,488.81
Would you pay $50 a month to save $1,488.81?
$50 a month to be totally Debt Free in 7 years?

19. $199 Down and only $49.99 a month
•No Contract.
•No Refinancing.
•And LITTLE to no change to your budget.
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20. ACHIEVING YOUR FINANCIAL GOALS
BEGINS WITH DEBT ELIMINATION
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