Let’s explore the common myths of a 15-year mortgage vs. a 30-year mortgage. A mortgage on our home is one of our greatest expenses, so it is important to know the facts and to question some of the “typical” financial advice we have heard from family, friends, and banks. Below you will find a chart that compares your options and offers a different way to look at things.
Do you know why banks love 15-year mortgages and try to entice us with a lower interest rate? It’s because they get their money back faster which allows them to lend it out again. A dollar today is worth more than a dollar 360 months from now so isn’t it in your best interest to pay the bank off with cheaper dollars in the future?
Every dollar you pay the bank puts them is a stronger position and you in a weaker one. Instead of paying a larger mortgage payment you could be creating cash flow to cover emergencies, fund an opportunity or take a dream vacation.
Once you have dumped all of your hard-earned cash into your home the only way to get it back out is to sell it or burn it. Yes, there is always a home equity loan – but how willing do you think the bank will be to loan you money against your home if you are out of work, disabled or retired?
What if there was a place to put your money that was guaranteed to grow tax-free every year regardless of the economy? Your money remains in your CONTROL and can be accessed anytime you want for any reason you desire.
Interested in learning more? Give us a call at 574-234-1980 or contact us at NeeserInsurance.com, we are here to help.
