juegos Have you ever considered paying off your mortgage to be a legitimate way-perhaps even the perfect way-of transforming your debt into wealth?

Most people live under the misconception that a low home mortgage interest rate is one of the best ways to pay off their debt and save money in the long run. They have no idea that certain people completely eliminate all of their debts, including their mortgages, in seven to eight years. Those same people are able to pay for everything in cash. They take the money they were wasting on debt-which according to national averages is $2000 per month-and use it to build real wealth.

trabajo Transforming your debt into wealth involves linear math and a critical path system, not a magic wand. Despite the obvious benefits of paying off your mortgage sooner, many homeowners still ask, “Why should I pay off my seven or eight percent mortgage when I can get a better return by investing in the stock market? I can probably get ten to fifteen percent or better there.” This is one example of the conventional financial wisdom that so-called experts have taught us, and it’s complete rubbish!

Here are 3 Reasons Why the “Better Return in the Stock Market” Idea is a Myth:

Reason #1: Comparing mortgage interest rates to stock market investments is an apple to bananas comparison.

trabajar Most investments in the market are simply “paper returns.” If the market plunges, then you lose that investment. When you pay off your home mortgage, however, you’re getting a guaranteed return on that 7 or 8% interest rate. The closest comparison in the market would be thirty-year Treasury Bonds, which currently pay less than seven percent, and have no guarantee. Our faith in the U.S. government makes the investment feel like a sound one, but feelings should never guide our financial decisions. When you compare return rates on investments, you must compare guaranteed rates with other guaranteed rates, apples with apples. Non-guaranteed rates are bananas, not apples.

Reason #2: Homeowners who have a 7-8% interest rate on their mortgage have either bought or refinanced a home recently.

If they would take a look at their mortgage payment coupons, then they would see that what they’re paying right now is nowhere near 7 or 8%; it’s really about 85-93%! They disagree, saying, “Yeah, but that’s right now, but over the next thirty years, it will only be 7 or 8 %.”

Well, according to the National Association of Realtors, the average American family moves every 7.1 years. During my seminars I ask the question, “How many people have moved in the last seven years?” Invariably, the majority of the people in the room raise their hands.

So, the question is, “What interest rates are homeowners actually paying those first five to ten years of their mortgage?” I did the math and discovered that a homeowner paying month to month on a $100,000 mortgage with a 7% fixed interest rate will still owe 94% of that mortgage at the end of five years. After ten years, that homeowner will still owe 86%!

The next question is, “Okay, so what happens when you move into a new home?” You guessed it: you start over with a brand new mortgage and paying an interest rate of 85-95%!

How can your 10-15% return in the stock market make up for the money you lose to your “great” mortgage rate? Add to this the reality that people are constantly refinancing to get a better interest rate or getting home equity loans to consolidate debt, and it comes as no surprise that only 2% of Americans truly own their homes. 98% own mortgages.

Another way is to budget how much you spend. It should equal how much you spent on the other people. Try drawing names so then you aren’t buying for quite as many people. That always works well too.

As you can see, there are some many ways you can improve how much money you spend at Christmas. So, what are you waiting for? There are only a few weeks left until Christmas. Might as well go and get your shopping started You can be published without charge. You can to republish this article in your website or blog. Please provide links Active.