Many of us intellectually accept that paying off our mortgage would be a good idea. However, most of us never do it. Why?

• We don’t realize the true cost of a mortgage
• We accept the dictum that carrying the largest mortgage possible is a sound financial practice
• We don’t have an executable plan to make it happen

True Cost of a Mortgage

The 30-year mortgage, which we accept as the norm today, was historically reserved for less qualified borrowers. The desirable mortgage was the 15-year mortgage. However, the banks eventually discovered that we Americans don’t necessarily care about the term of our loan. We care about the interest rate and, more importantly, the payment amount.

On a 30 year fixed mortgage, it takes 21 years before the amount of principle you are paying outweighs the interest you are paying to the bank—21 years!  If you were to borrow $200,000 on a 30-year fixed mortgage at 6%, over the 30 years, you would pay back to the bank almost $432,000. That is approximately $232,000 of your hard-earned money that has disappeared to the bank’s coffers. Why not keep as much of that money for yourself? You can, and it can make a huge difference in achieving your financial objectives. 

Unsound Advice

While much of the common financial advice is theoretically right, when the simplicity of theory meets the complexity of reality, the results can be less than desirable. In fact, some of the advice from the financial “gurus” is either incomplete or just plain wrong.  When it is advised that you maintain the largest mortgage possible, it is also assumed that you are able to invest your moneys elsewhere, where the performance of your investments outpace the interest on your mortgage. While this theoretically makes sense, this advice is riddled with problems:

• Many of us do not have the investment competence to achieve returns that outpace our mortgage interest rate. Frequently, neither do the advisors.
• As long as you have debt, you are required to service it— it is the modern form of slavery. This means that you will have to continue to work or invest for as long as you maintain the debt.
• Even if we have the investment intelligence to outpace the interest on our mortgage, we often don’t have the discipline to invest all eligible funds. Instead, we buy consumer goods and depreciating assets—like automobiles.

Establishing a Plan

A huge stumbling block to paying off a mortgage is the lack of an executable plan to do so. Perhaps you imagine sacrificing too much discretionary income or that the task is simply too complex and overwhelming. What if you had a tool that solved those problems? That tool exists. With the Money Merge Account, you have a tool to simplify the task of paying off your mortgage, while visually measuring your progress online. In about 10 minutes per week, you can pay off your mortgage in 8-11 years. Even with knocking years off your mortgage, you are still able to maintain your current standard of living. Just imagine how much easier it would be to become financially free if you no longer had a mortgage to pay.

If you are a real estate investor or aspire to be one, envision how much your cash flow would improve if you owned your properties free and clear. With this tool, you can change what you know you should do into reality. If you did nothing else in the pursuit of achieving your financial goals, use this tool. It will make you richer faster.

To get started on your plan to eliminate your mortage, please complete the online form or contact our office at 1-877-511-3152.