I have been passionate about educating my clients about paying off their mortgages faster either through paid programs or smart analysis. I would like to share those ideas with you here.
The reasons why it is so important to consider paying off your mortgage, instead of using it as an ATM are:
1. It gives you better leverage with you lender. If the real estate market slides again, you will not be beholden to your lender to let you out of your loan if you need to move, if there is a divorce or some other change in circumstance that requires that you sell your home.
2. It will stop the feeling that you are “renting from the bank” as you will be building equity in your home rather than watching you equity erode.
3. It leaves you with the flexibility to rely on yourself for funds if cash is needed. (This is a much longer discussion than I care to go into here, but am happy to talk to anyone interested in this thought).
4. It allows you to watch the market and sell when the time is best for you.
5. It saves you tens of thousands of dollars in interest payments.
6. If interest rates drop and you want to refinance, it gives you choices about the number of years you want your new mortgage to run and you start with more equity..
This strategy may be used in conjunction with or instead of other savings strategies
There are a number of different ways to approach this strategy. You can purchase a program that has already addressed the algorithms necessary to pay off your mortgage as well as other debt in a fraction of the time (Worth Unlimited is one such company). Or, you can also just play with the figures based on your current mortgage at websites that you can just google by searching “Amortization Calculators”. The one I find the easiest to use is http://bretwhissel.net/cgi-bin/amortize.
Want to do this and don’t fully understand how to make the numbers work? Call me. I am happy to help set you on the road to financial freedom! 847 677 6772. www.REalLegalSolutions.com; erica@ecminchellalaw.com
Content provided by Women Belong member Erica Minchella
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