Most of what we believe about mortgages and home equity, which we learned from our parents and grandparents, is wrong. They taught us that mortgages are harmful to us and our long term financial goals.
The problem with this rationale is it has become outdated. The rules of money have changed.
Unlike our grandparents, we will no longer have the same job or live in the same home for 30 years, nor can we depend on our company’s pension plan or even Social Security for a secure retirement.
Wealthy Americans With The Ability To Pay Off Their Mortgage Understand How To Make Their Mortgage Work For Them.
They put very little money down, they keep their mortgage balance as high as possible, they choose adjustable rate interest-only mortgages, and most importantlythey integrate their mortgage into their overall financial plan to continually increase their wealth. This is how the rich get richer.
Ric Edelman, one of the top financial planners in the country and a New York Times Best Selling author, summarizes in his book, The Truth About Money, “How you handle issues of home ownership may well determine whether you achieve financial success.”
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