| Look in your wallet. The cash you see is
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| | shorter term mortgage drastically reduces
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| not being invested and is not making you
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| | your interest payments. Great! But, wait.
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| more money. That dollar in pocket change
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| | What kind of tax savings do you get
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| will buy you a soda, but soon it's gone
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| | through out the term of the loan?
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| and that indicates a temporary value
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| | Considering the fact that interest in
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| because you will get thirsty again by
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| | mortgage loans is tax deductible, you
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| tomorrow. Each month you pay your house
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| | have not gotten much of a tax break. So
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| note, that money isn't working to make
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| | what? You own your home after 15 years,
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| you more money, but it is giving you
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| | right?
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| value. Value is something that will
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| | What if you lose your job? Become
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| increase. Paying your house note gives
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| | injured? What if you are 50 and fifteen
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| you value because your house, as a
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| | years away from retirement? Is it a good
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| general rule, will go up in value. But,
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| | use of your money then?
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| does it go up at the same rate as the
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| | Take half of that money you were going to
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| interest you pay? If it does not, is that
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| | use for a down payment and invest it in
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| a problem?
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| | real estate property. Get a 30 year loan,
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| On the surface, it seems that it is the
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| | instead of a 15 year loan. The amount of
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| smart thing to do to pay off that house
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| | interest you pay goes up, yes, but you
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| mortgage as quickly as possible. It also
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| | get a tax deduction on it. It takes
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| seems smart to either get a 15 year loan
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| | self-discipline for this to work, but you
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| or to make double payments with the idea
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| | can take the money you save on the lower
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| to reduce the amount of interest you are
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| | monthly notes and invest this, too. At
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| paying as well as paying off the mortgage
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| | the end of 15 years, you not only have
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| sooner with the added benefit of more
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| | your tax savings, but you also have the
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| equity, faster.
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| | savings and investments that are at fair
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| Is that a good and valuable use of your
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| | market value more than what you owe on
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| income? Most folks would say yes, no
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| | the balance of your home mortgage.
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| question.
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| | What most people do not realize is that
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| If we dig a bit deeper and look at the
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| | equity in your home is not earning you a
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| situation from a different angle, we can
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| | return on your investment. Real Estate
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| see another dimension to this value
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| | investment properties yield a greater
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| question. Let's say that you have a great
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| | return than do most other forms of
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| job and great credit. You get a fifteen
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| | investments in the long term. When your
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| year mortgage loan for a home making a
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| | investment pays for itself through rental
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| large down payment. Your monthly notes
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| | income, that will equal greater leverage
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| are rather high, but you were prepared
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| | and greater value for your dollar.
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| for it. The large down payment, and the
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|
