Best investment advice is to pay off your mortgage quickly is a no-lose idea!
It is not uncommon for most home owners to know the benefits of mortgage modification especially in this internet-savvy world. The info can be easily obtained from the search engines and understood thru reports, blogs or even Youtube.
However when it comes to enjoying the benefits of such mortgage modification, sad to say, the statistics is disappointing. The best financial advice I ever received is that “Knowledge is now power but potential power. Unless you do it, knowledge is useless!”
Just to recap, mortgage modification if done correctly feels like this. If you knew each time you pay mortgage, it is usually broken into 2 parts, i.e. probably half will go into paying up your original home loan and the other half is interests. But bear in mind, it is interests not your own interests but the interests of the bank. The feeling of pain is when you come to realize is that whatever interests is paid, it’s gone forever, it’s never coming back to you anymore.
The longer one takes to undertake mortgage modification, the more interests will be paid to the bank hence not understanding the power of compound interest against you or taking advantage of your annual bonus and increments to pay you banker faster and more will rob you blind.
It is not necessary to own a home yet but bring this message to your family or a friend is the best financial investment advice you can share!
Forget about putting your money into mutual funds, stocks or other fanciful financial assets but investing in your own home is but the best financial advice that gets better and better since the home can appreciate in value and feeling of being able to sleep at night under your own roof is great!
In mortgage modification it can be paying more each month, reduction of bank interest rates or even more payments per month or even a small lump sums but whatever it is, do it first. The benefits await you whether you understand now or not but will show in your bank mortgage statement!
This concept is simple; the rate of returns of mortgage reduction is the rate of return equals the interest rate charged by the bank. Remember investing in your own home debt is sure and productive in the long term, though currently the stock market is reaching market highs due to abundance of cash thru government Quantative Easing. But higher stocks for high long? When the bubble bursts or crash occurs, it will hurt a lot of people but not you, if you focus on your best asset, your home.