The January issue of money magazine had a great article that reinforces what Wealth Equity Planning is all about. The article is about why pre-paying your mortgage is not mathematically supported. It looked at how over the long term investing that cash you would have put into your mortgage is dramatically superior. It also points out that investments are more liquid and can be accessed easily in an emergency making it a much safer strategy as well. It's great to see the mainstream media finally embracing these sound financial principles. To read the whole article, go to www.wealthequityplanning.com/index.php?op=articles .
Thursday, February 14, 2008
Sunday, February 10, 2008
Bankrate Study Shows Holes in Mortgage Planning
A recent study by Bankrate.com shows that nearly 36% of homeowners don't know what kind of mortgage they have. Sadly, this doesn't surprise me too much. Every day we get at least one call to the office from a person who says they thought they had a fixed rate loan but it is now adjusting and payments are going too high.
The real problem is not just that these people don't know that their mortgage wasn't fixed but that in almost every instance these people really NEEDED a fixed rate loan. Most of these people are credit challenged and things really haven't changed for them in the last two or three years. It's sad to think that many people in this situation may now lose their homes because the market has changed the guidelines making these loans available have tightened.
The moral to this study is if you're not sure what type of loan you have find out ASAP! Feel free to give my office a call and I can review all of your paperwork with you.
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