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Главная | Без политики | Common Sense Club | Mortgage: “To pay or not to pay, that is the question…”

Mortgage: “To pay or not to pay, that is the question…”

This question is not rhetorical even though it seems to be. Let’s look at it more closely in order to dot the i’s and cross the t’s.

First of all, paying off your mortgage (M), as well as any other debt, will not increase the amount of money in your wallet. So, is it really worthwhile doing something that is not going to add up to your wealth?

Secondly, mortgage payoff is an invest­ment with a certain interest rate. Howev­er, it is always possible to find a better investment opportunity on the market. Furthermore, in case your retirement precedes the payoff of your mortgage, the project becomes completely point­less and a different way out has to be found.

Last but not least, market fluctuations in the cost of real estate property oftentimes make mortgage payoff inexpedient. That is why you should have a plan of protecting your equity in the home.

For your information: during the real estate crisis, people who incurred the biggest losses were not the ones who lost their homes but the ones who paid off their mortgages.


To continue paying off your mortgage after you retire makes no economic sense. Losing your home is not a solu­tion either. However, it is not a proverbial vicious circle. The best way out is to start making ’interest only’ payments.


~ to increase your family budget be­cause your mortgage payments will go down 30%-50%;

~ to avoid losing your real estate property in case the market value of your home drops down.

The program is called Home Equity Line of Credit (HELOC) and is available in the portfolio of any bank that serves your checking and savings accounts.

To get financing does not cost you any­thing. All you need is sufficient income, good credit history, and 30% equity in your home.

Note that if you are advanced in years and need over 15-20 years to pay off your mortgage, HELOC is a financial solution that will optimize your budget and provide successful and stable future for your family.

joseph RozenbergPlease call me for more information: 847-520-7030.
email: mockbajr@gmail.com
site: www.drfgroup.net