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2016-07-26 15:23:23
Mortgage : Latin for 'Death Grip'

 

 If you’re like me, when you hear the term “mortgage”, you think of the backside of the Monopoly property card. The intimidating red background with tiny boring font reflects your poor economic choices (or luck, depending on your perspective) that caused you to lose control and run out of funds. What a grip that green stuff can have on us in real life. 

So what about that American dream of owning a place to call home? How can we peaceably choose the financial choke-hold that comes with it? Have you ever put that together? 'Mort' meaning death, 'gage' meaning grip, a mortgage can feel very much like that: a death grip. 

I have recently learned that lenders don’t actually desire to make us feel this way. The sentiment is derived from an unfortunate lack of fiscal understanding, which has sadly plagued our nation in many more arenas than just home-buying. Hopefully today I can shed some light on the matter, and you can walk away not feeling swindled but rather empowered to take control of your finances. Remember, any dollar that isn’t told where to go will inevitably leave. Stop working your life for the almighty dollar, and learn to make what you have work for you!

Let me start by dispelling the myth (or maybe this was just my own misunderstanding) that realtors and lenders believe you should not buy a house for cash. If you have the cash, more power to you! I am also not advising “don’t buy a house”. The advice on the table here is *how* to buy or loan a house. If you have the cash to buy outright, the suggestion instead is not to put that cash in a not-so-lucrative asset, but rather let equity and appreciation work for you, and sock that money away in something with a 7% or greater ROI (fancy word for “a plan to get more money out of a system than you put into it”, or return on investment).

Before I get too carried away with the numbers, my suggestion to you would be to reach out to your friendly agent and have them coach you through your personal situation. You may even be brave enough to reach out to your lender, and have them explain the advantages of a 15 or 30- year loan, where else to invest, et cetera. An informed buyer is a happy buyer. You are not out to be sold, you are out to be educated so that you can take all aspects into account and in wisdom search out a matter before making the second or third greatest commitment in your life (if you catch my drift).

Don’t take my word for it! #GetInformed :)

 
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2016-07-26 15:23:23
Mortgage : Latin for 'Death Grip'


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