What kind of mortgage do you have? A 30-year fixed? 15-year fixed? Well, if you do … your bank loves you.
Those old traditional 15-year, pay-it-off-quicker type of home finance tools are excellent for your bank’s bottom line. It’s evident because they offer slightly lower rates to lure you to take them. The shorter time they tie up their invested cash, the lower their risk of market change. They know time has a large affect on money, so they want to tie up or lock in their money for shorter terms whenever possible.
Banks also love bi-weekly payments. Most banks servicing your mortgage will happily set up a bi-weekly payment plan for free. They want movement of cash toward them whenever possible.
Money received today is worth far more to banks than money received tomorrow. That’s a basic fact of finance.
But isn’t it funny? Most borrowers don’t know this and the bank certainly isn’t going to tell them. The effects of inflation and the shrinking of a dollar over time make banks want to scramble for cash now. They know future dollars will be worth much less.
Wouldn’t it, therefore, make sense to put off paying for your house as long as possible? If you could buy a house for $300,000 today and delay handing over that $300,000 cash until 30 years from now, wouldn’t those dollars look like a wool sweater after going through the dryer by then?
You’ve probably heard your older relatives talk about buying a steak for a nickel or a car for $1000.
“The dollar ain’t what it used to be” … and the future holds the same fate.
Time is your greatest ally when it comes to accumulating our life’s wealth. So should you build your wealth or eliminate debt by paying off your mortgage? While the bank is growing stronger and receiving a slow and steady monthly cash infusion, you are doing away with your own opportunities to invest your valuable dollars elsewhere. Your personal wealth is not being enhanced in this process.
To learn more about how to maximize your mortgage for optimal wealth read page 148 in Chapter 8 of Stop Sitting on Your Assets.
There you’ll learn how to leverage your cash and tax deductions to make the most of your money and increase your wealth.
Well ... if you had your personal copy of Stop Sitting on Your Assets today, you could have your hands on these great strategies outlined for you step-by-step inside the book ... right in front of you ... all in one place.
Don’t wait any longer.
Don’t send another unnecessary dime to the IRS.
But more importantly, certainly don’t send another unnecessary dime to your lender.
