The fact is, Americans devote the largest portion of their incomes to housing. Consequently, how you handle the financing of your home will have far-reaching implications on virtually every area of your financial life, including your ability to save, pay for college, and plan for your retirement.
The mortgage planning process isn’t about wasting your valuable time trying to save $20 per moth. Mortgage Planning is about integrating your mortgage into your overall long and short term financial goals. Your mortgage is one of the most powerful financial tools that you have at your disposal. The way you manage your equity, the way you manage your mortgage is crucial.
Unfortunately, the vast majority of those financing their home miss the big picture. Most people focus on a small part of the mortgage equation, the interest rate. The interest rate is only one part of the mortgage equation. The fact is that the interest rate you are paying isn’t the real problem, the real problem is the VOLUME of interest that you are paying.
Has it hit you yet? Do you see why focusing on saving $15.00 a month is missing the big picture? Remember, a great rate on the wrong mortgage strategy can literally be a $400,000 mistake! If you really grasp this, It will change your line of thinking next time you take out a mortgage.
Your House is probably the largest personal investment you will ever make. How you decide to pay for it can create unnecessary wealth transfers.
Too many people focus solely on managing their assets. Few, understand the power of managing their largest debt, their mortgage. Managing your assets without managing your liabilities is like heating and cooling your home with the windows wide open!
Tune in to hear David talk about the all important topic of mortgage planning.