 |
|
|
|
“Can You Spot The $596,000 Difference In These Identical Homes?” The
$596,000 Mistake… Did you spot the difference? Let me give you a hint; it’s not the landscaping. It’s not the location. It’s not the gold plated fixtures in the master bathroom. In fact, it’s not anything you’d ever notice with the naked eye. The $596,000 difference is in how much the buyers unwittingly may pay for this home if they aren’t careful. I recently met with a gentleman who was referred to me by his financial advisor to receive some consulting on how to best structure his mortgage in preparation for retirement. He wanted to retire in 13 years and he had refinanced his mortgage last year to a 15-year fixed rate loan, taking advantage of the low rates, and wants to own his home free and clear right about the time he retires. Most home owners have the misconception that the wisest method to accelerate the payoff of their home is to simply pay extra principal payments to their mortgage by utilizing a 15-year mortgage, bi-weekly payments or even by adding an extra $100 each monthly. In actuality, none of these methods usually prove to be the wisest method to accomplish a “free and clear” home. You can accumulate sufficient cash in a conservative tax-deferred mortgage acceleration plan to pay off a home just as soon or sooner than utilizing the methods described above. In addition you can accomplish the goal of paying off your home just as soon (typically in less than half the time) plus you will have the following advantages: 1) Maintain flexibility, liquidity and safety of principal by allowing the equity to grow in a separate side fund where it is accessible in case of emergency, temporary disability, or unemployment. 2) Maximize the only real tax-deductible interest allowed by tax reform by keeping the loan balance as high as possible until you have the cash accumulated to pay off your home in a lump sum. Let’s look at our example above…by strategically refinancing and taking advantage of the tax deductibility of mortgage interest we were able to accumulate enough money (at only 6% rate of return) to pay off the home in 8 ½ years instead of 14 years. If he continued to invest his monthly savings he would have $596,000 more than the balance of his mortgage at the time he was ready to retire. Don’t be fooled into giving up the liquidity, safety and potential rate of return on your money by giving it to your mortgage company. Get the facts and structure your mortgage to give you the greatest advantage from the start. Contact us today for a free analysis and don’t make “the $596,000 mistake”. Our coordinator, Carmel Maddox, will schedule an appointment for a free mortgage analysis for you. Please give her a call and set the wheels in motion toward more financial freedom— 703-481-2291 ext. 111 E-mail: Carmel@NationsHomeFunding.com You may also start the process by completing the form below |
||
Free
On-Line Loan
|
||
|
||
| Note:
By submitting this form, I/we hereby authorize Nations Home Funding,
Inc. to obtain an in file credit report from a credit reporting agency.
I/we also agree to allow Nations Home Funding to contact us regarding
their mortgage services and products. This does not constitute in any
way a commitment for a loan by Nations Home Funding, Inc. I
further acknowledge that I have read Nations Home Funding Inc.'s Privacy
Notice. Click now to read Privacy Notice. |
||
