Many people hate their mortgage because they know over the life of the 30 year loan, they will spend more in interest than the house cost in the first place. To save money it becomes very tempting to make a bigger down payment or make extra principal payments. Unfortunately, saving money is not the same as making money. Or, to put it another way, paying off debt is not the same as accumulating assets. By tackling the mortgage pay-off first, and savings goal second, many fail to consider the important role that a mortgage can play in asset accumulation.
Consider this: Every dollar we give the bank is a dollar we did not invest. While paying off the mortgage saves us interest, it denies us the opportunity to earn interest with that money. It is quite possible to earn more from a conservative investment than a tax favored mortgage loan is costing us.
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