If you had enough money to pay off your mortgage right now, would you?  Many people would.  In fact, the ‘American Dream’ is to own your own home, and to own it outright, with no mortgage.  If the American Dream is so wonderful, how can we explain the fact that thousands of financially successful people, who have more than enough money to pay off their mortgage, refuse to do so.

The answer?  Most of what we believe about mortgages and home equity, which we learned from our parents and grandparents, is wrong.  They taught us to make a big down payment, get a fixed rate mortgage, and make extra principal payments in order to pay off your loan as early as you can. Mortgages, they said, are a necessary evil at best.

The problem with this rationale is it has become outdated. The rules of money have changed...

 

--To read more, email us to request a copy of the full article--

 

The full article contains more info on:

  • Why people fear mortgages, and why you shouldn't

  • Successfully managing home equity to increase liquidity, safety, rate of return, and tax deductions

  • How large amounts of equity in your home could be a disadvantage

  • The cost of not borrowing (Employment Cost vs. Opportunity Cost)

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America's Mortgage Choice

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Oak Brook Terrace, IL 60181

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