Today I want to tell you about an import report out there that you should pay attention to if you’re a homeowner or considering buying a home.  It’s from the Federal Reserve Bank in Chicago.  The report discusses prepaying your mortgage.  The report says that it’s an awful idea and that most people are just throwing away their money when they do that. Prepaying your mortgage just doesn’t make a lot of sense.  If you’d like to have a copy of this report, I’ll be glad to send it to you.  Just give us a call at 1-866-490-1827.

Treating your home differently than any other investment is the biggest mistake you’ll ever make.  According to a 2003 national housing survey done by Fannie Mae, the reason most Americans cited for buying a home is for a long-term investment.  And that’s exactly what it is.  I know you know that it’s a long-term investment. I tell my wife, wherever you want to live, we’ll live!  But realistically, that’s still an investment.  If you believe your home is an long-term investment, then shouldn’t you manage it as carefully as your other investments?  And do you manage your other investments carefully? Let me challenge you on this. . . .

When comparing investments, I look for safety of principal.  I want something liquid.  You want access to your money.  You have growth potential and you have tax efficiency.  These are the four things you really need in any good investment.

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Tags: investments, prepaying a mortgage

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