Do you know why most people hate their mortgage?
It's because they know that over the life of that 30-year loan, they will have spent more in interest than the house cost them in the first place!
So what's a soon-to-be homeowner and an existing homeowner to do?
A bigger down payment upon purchase is always an option,
So is making additional monthly principal payments...
and then there's a 3rd option for those who subscribe to the Missed Fortune philosophy of accumulating wealth,
Invest your otherwise additional monthly payments in an interest baring account whose rate-of-return is higher than the interest paid on your mortgage. Essentially, you accumulate enough assets to pay of your mortgage in fewer than 30, even 20 years... [give me a call or send me an e-mail, I can show you the math]
Now some will argue with what I'm about to say next (in fact quite a few of you might)... Ultimately, no one way is better than the other. What's really important is, which method brings you greater piece of mind?
Best,
Mortgage Planner
p: 323.572.8322
e: rbueno (at) worldwidecredit (dot) com
Author of www.industry-report.com
