When you make the decision about the title of this piece you might be changing your life or
you might be locking in your future plans. So which comes first? You need to answer the question for yourself if you are planning a future, because this can have a very important part
while looking for your retirement.
Before I get into this I want to give you an inside look at the mortgage industry. It is interesting
and unique. The industry continues to put out loans with interest rates that 99% of the listeners
can’t get. Does the industry care? No. They want new borrowers to think they are the best company to deal with in procuring a new loan.
The mortgage industry gets you loans for many different reasons. You can be buying a house and need a first mortgage; you could also be needing a 2nd mortgage as well.You could be selling your house and your buyer wants to assume your current loan. Do you know what happens to you if that occurs?
The industry is very active in refinances as well as taking some lump sums out of your property
for other uses. Do you know how much you can take without paying taxes on the money?
You might also be seeking a reverse mortgage. Now you see why the advertisers are willing to
do what they need to to get more customers. The biggest ploy is announcing a very low interest
rate on a 30 year fixed and tell you how much money you will save. Most of the people who fall for this lose significant amounts of money while believing they are saving large amounts on their new payment. But realistically the worst part is forcing you to take your eye off the future which
is most important.
If you are in your late 30’s or in your 40’s you need to set a plan to get you where you want to be in the next 10 to 15 years. If done right you can begin planning for your senior years. You will want to have the house paid off as quick as possible and consider where you want to live for the
“fun” years. Some people want to remain in their home and with it paid off they can use some of their equity for a second home (vacation home), and really have great enjoyment.
If you can define your family’s future then you can listen and laugh at the “come on’s”that won’t help you. Once your plans are in concrete then you can start looking for a better mortgage than
you might have now.
Get together with the family, even if it is only you and your spouse and start making plans.Good