| What if I were to tell you that almost
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| | positive outcomes of paying off your
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| everything you have been told about what
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| | mortgage versus keeping it.You no longer
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| to do with your home has been absolutely
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| | have to make a mortgage payment to the
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| wrong and that one of the worst ways to
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| | bank every month.You might have less to
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| build wealth is through your home? And
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| | pay at retirement.And that's about it.
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| what if I further went on to show you
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| | Now, notice I didn't say anything about
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| that anyone who perpetuates this myth
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| | the myth that you finally "own" your
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| probably is not your best source for
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| | home. In truth you never do, you always
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| accurate financial information?Most of
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| | have to pay taxes on it and it is always
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| you right now are looking at the byline a
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| | at risk of loss through various means
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| couple of times to see if this article is
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| | including but not limited
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| REALLY being written by a mortgage
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| | to:TaxesCreditorsCasualty LossIn just
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| person. Some of you have taken this as
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| | about any analysis where someone is using
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| final, unequivocal proof that all
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| | the money that they would otherwise use
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| mortgage people really do sit around a
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| | to pay down the principal of their
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| big table of tea cups wearing hats with
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| | mortgage for other means of wealth
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| fractions on them! No you are not in
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| | creation, the other 'means' come out
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| Wonderland but if you keep reading you
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| | ahead every time. The requirement here is
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| might find many of you have been for a
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| | to spurn our human instinct to consume
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| long time now.One of the buzzwords or
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| | and to use this money effectively.Notice
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| catch phrases floating around the
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| | that this is the key to wealth creation.
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| financial circles is "wealth creation."
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| | If you can't conquer that human instinct
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| This has gained prominence due to the
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| | nothing else matters. What this allows
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| ability of the planner or agent to
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| | you to do is to use dollars you are
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| broaden their focus on overall wealth
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| | already spending and inject them into the
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| with their clients instead of just return
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| | system to your advantage.The simple truth
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| on a particular investment. While a
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| | is that paying off your mortgage is
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| holistic approach is a very good one,
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| | purely an emotional decision that we have
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| what wealth creation strategies often
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| | been trained to believe is what we are
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| lack are a defined strategy for
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| | supposed to do, but if you understand the
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| accomplishing well, wealth creation!
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| | implications of the decision and can act
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| These plans often fail or vastly under
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| | accordingly, that choice is usually
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| perform because they don't properly
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| | incorrect.DON'T PAY ATTENTION TO THE MAN
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| account for one of the biggest parts of
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| | BEHIND THE CURTAINNow you say, this is
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| the wealth picture and that's the
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| | just a clever trick by another mortgage
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| home!WHAT DID HE SAY?Now that's not a
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| | guy trying to make money off of me. Well,
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| typo and I didn't contradict myself from
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| | typically consumers refinance every 3
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| the first paragraph. You see, most people
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| | years and many times that is because they
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| believe their home is something
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| | need money . But clients who have
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| completely separate from the rest of
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| | invested that money into the other
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| their financial planning. It's this
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| | elements of their financial plan are much
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| sacred cow that's over in the green grass
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| | less likely to refinance for need
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| munching away while everything else in
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| | reasons.People borrow for car
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| their financial life is trying to figure
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| | expenditures, home improvements, college
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| out how to grow without the food it
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| | expenses, trips or to pay off that credit
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| needs. The sooner people realize that
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| | card debt they said they would never run
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| EVERYTHING they do is an investment
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| | up again. People who are planning for
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| decision , the better off they will be.
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| | these expenses and finding tax preferred
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| The implication of your decision is not
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| | or tax free ways to fund them with the
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| simply what you obtain by your action but
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| | money tied up in their home have little
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| what opportunity you give up.So, back to
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| | need to make decisions based on these
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| wealth creation and mortgage planning. In
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| | "needs".OK, GREAT . NOW WHATThere are all
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| borrowing some thoughts from a great
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| | kinds of different mortgage products and
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| financial partner of mine, Brent Gilmore,
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| | programs that can make a consumer's head
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| we can summarize what we typically look
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| | spin. The important thing to keep in mind
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| for as far as characteristics of a good
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| | is that most of them are wrong on almost
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| investment as:something that earns us a
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| | all levels. If you are looking for wealth
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| good return based on our riskis liquid if
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| | creation a home is a great part of that
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| we need itis not subject to additional
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| | plan if used correctly. That does NOT
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| restriction to access it once we have
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| | mean you go out a get an interest only
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| itis not at risk of loss.The reality is
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| | ARM so you can buy a $400,000 house when
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| your home is absolutely not the
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| | you otherwise could only afford a
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| definition of a good investment. The
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| | $200,000 house.For many families they
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| reasons are fairly clear if we break them
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| | want to invest in the college savings.
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| down. What if I told you the MAXIMUM
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| | They want to have more than $50,000 in
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| return you could make on the purchase of
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| | life insurance that their employer gives
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| your home was 0%?Here's where we hit the
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| | them. They want to protect against
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| rabbit hole.First we must explain the
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| | disability or job loss. They want so many
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| difference between return of investment
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| | things but don't know how to find it in
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| and return on investment. Return OF
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| | the pool of money that they currently
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| investment is simply getting back the
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| | have available. Does it mean they give
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| money that you put in. Return ON
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| | up? Often, that is the case but it
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| investment is difference between the end
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| | doesn't have to be.It means that you look
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| value of your investment and the amount
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| | at opportunities in the equity that isn't
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| you invested.Whether you pay cash for
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| | doing anything for you now and put it to
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| your home or pay nothing down, your home
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| | use along with reallocating dollars you
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| mortgage will be worth the exact same in
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| | are already spending. The mortgage
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| 1 year, 5 years, 10 years or 30 years. It
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| | vehicle you use is independent of this
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| is true that if values keep going up you
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| | choice and only your situation will
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| will make a positive return ON investment
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| | determine which one is best for you. For
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| but that is independent of the return OF
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| | most this is all that is necessary to see
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| your investment. Even that fact has some
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| | a million dollar or more difference at
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| doubt clouding it, but that's another
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| | retirement. For others who are closer to
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| article.PAGING CHICKEN LITTLENow let's
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| | an age where you will cease to earn
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| step back from all of the sky is falling
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| | income it is necessary to change current
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| stuff and clear some things up. Your
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| | spending habits along with these
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| house may well continue to appreciate in
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| | measures.These ideas that I have very
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| value, especially in a strong local
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| | briefly touched on are ones that need to
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| economy like Columbus . But appreciation
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| | be explored on an individual and ongoing
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| as I showed you above has absolutely
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| | basis with a team of financial
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| nothing to do with return OF capital .
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| | professionals who understand how to help
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| Remember that if you bought a $300,000
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| | make this work for you. This is not one
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| house today, paid cash for it and turned
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| | of those "plans" with steps that you can
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| around in 1 year and sold it for $350,000
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| | follow from a book on your own and in 20
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| you would have experienced the same
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| | years a golden goose lays you some
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| appreciation as if you had put $0 down to
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| | precious eggs. Coordinating 401(k), Roth
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| buy the house. Your $300,000 was invested
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| | IRA, investments, permanent life
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| in an asset that yielded 0% during its
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| | insurance, wills and trusts is something
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| use.The key to this is that when you pay
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| | that needs much more discussion than is
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| your mortgage you "choose" to invest the
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| | prudent here and frankly with people who
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| money in your home instead of in other
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| | are much more qualified to tell you than
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| options that could return you more . Lets
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| | me.It is time to think of your mortgage
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| Consider the consequences of not being
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| | and your home as more than the place
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| able to pay that mortgage one day:Will
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| | where you and your family make great
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| the bank give you back the money you paid
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| | memories. If you allow it to work as part
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| on the mortgage and all of the
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| | of a total responsible financial
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| appreciation when they sell your house in
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| | philosophy it can be an incredible wealth
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| foreclosure?Will they lend you more to
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| | booster. With so many choices in all
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| help you get back on your feet at terms
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| | areas of finance it is imperative that
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| as good or better then you have now?And
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| | you find a group of professionals that
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| will they do it without asking you to
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| | hold those same beliefs and values.
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| prove your ability to repay the new loan
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| | Easier said than done, I know. I know
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| when you couldn't pay the old one?Sounds
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| | because that is exactly what we have been
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| silly, but this is what happens all the
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| | doing for over a year in Columbus
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| time.Now wait, you say, I have a paper
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| | exclusively for our clients.This,
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| that shows me that if I pay twice per
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| | admittedly, is not for everyone and some
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| month I will pay off my mortgage 8 years
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| | of you might have even stopped reading by
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| sooner and save $84,000 in interest! You
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| | now because you think I am obviously out
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| are right, you will. BUT is it a good
| |
| | of my mind. That's ok, because changing
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| choice if that money that you borrowed at
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| | that human instinct to hurry up and pay
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| 4% (After factoring in tax savings on the
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| | down a mortgage is difficult. But for
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| interest) could be returning you more,
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| | those of you who have had their eyes
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| guaranteed , elsewhere? Consider other
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| | opened, hopefully I have provided you
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| factors as well:Are you making those
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| | with enough food for thought that you're
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| payments and carrying "bad" debt like
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| | starting to reconsider how your mortgage
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| credit cards at 15%?Are you finding it
| |
| | is working for you.For more on home
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| hard to put in enough in your 401k to
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| | financing and personal financial
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| even get the match your employer
| |
| | information go to: Articles,
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| offers?Are you funding the Roth IRA or
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| | calculators, newsletters, glossaries and
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| the kids 529 college savings plan?We
| |
| | more for your personal financial
|
| aren't even touching on the implications
| |
| | information needs.by Jeff Blovits ,
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| of eliminating or reducing your tax
| |
| | Franklin Bank SSBp. 898-5656 - Personal
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| deduction and increasing your overall tax
| |
| | Financial Information resource for
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| burden.TO PAY OFF OR NOT TO PAY OFF ,
| |
| | consumers.
|
| THAT IS THE QUESTIONLet's look at the
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| |
|
