Why Paying Off Home Mortgages Is A Dumb Idea - part 2

by Jed Baguio

* You pay as little amount of cash possible.

- This will increase you're good debt

- Put you're "down payment to be" cash to an investment vehicle. Earning you 10% or whatever then paying the home mortgage with their 5% or whatever. Giving you a profit. Important! The numbers may not be the same for you, but just be sure you're earning percentage is higher than home mortgage percentage.

* Choose the longest term. This lowers you're monthly payment and most occasions lowering you're interest rate.

* Don't pay it off as soon as possible. Don't join any programs that help you achieve that. Instead invest the extra cash to you're favorite profitable investment vehicle. What you'd rather want? paying 5% or earning 10%?

By following such steps you're actually borrowing money with 5% interest rate and earning with 10% interest rate giving you a profit of 5%! Important, this is not an exact calculations, in fact this an oversimplified example. This articles also is not aimed as an How To, but rather to give you an idea of the things possible. I still advice that you sit down with a financial advisor to have solutions tailor made to you're situation.

Copyright (c) Jed Baguio

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