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Why you should not pay off your house!
Hello All, Many people look at me like I'm crazy when I say this. But why pay off your house note and earn no interest, when you can use the same money you would have paid your house note with and invest it in your 401K or Roth IRA? You would get to do this every month! You might answer, "Because I want the security of knowing I have a place to live Kevin." But what if you were hurt, could not work, and you had to pay your house note but did not have any assets to fall back on? You would look to family or friends, and if they could not help, you would lose your home, your "good credit", and your American Dream. What I"m suggesting is that you look at a 5-7 year ARM (adjustable rate mortgage) with the understanding that your goal is to save money every month, invest in your retirement, or prepare for a rainy day. You can put that money in a Money Market Account, CD, or Mutual Fund Account. Let's say you currently have a mortgage of $180,000 @ 6.875% with a program of a 30-year fixed loan. Your payment would be ... more

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