At one time, Americans yearned for the dream to become homeowners. It was expected to have a family, career, and home to call your own. Then the day came when houses were used as cash revenue instead of ownership.
Many owners would justify their purchases by comparing good debt vs. bad debt. Over time, we heard the importance to manage debt while not concerning you with the worry of home and education liability. Americans were led to believe that if their debt consists of home ownership they were in the clear of having ‘too much debt’.
Decades before the housing market crash, homeowners would take the time to calculate their mortgage, repayment plan, and look forward to the date when their home was no longer a liability.
Today, many homeowners are using their homes as a means to have more money.
Mrs. Jones, a married mother of adult children, resides in Indiana. She is a homeowner who used the equity to travel and pay off existing debt. “We recently refinanced our home for a 30 year mortgage. We were able to withdraw $25,000 from the equity and the monthly payments remained the same as before.”
Although the idea of not paying a larger monthly mortgage payment sounds great, the fact that you may not ever own your home is disheartening.
The day will come when you will retire. When doing so, you want to eliminate as much debt as possible. The mindset of a financial stable person is to figure out how to endure with minimum or no debt as oppose to believing you will always owe someone.
© SMG 2012. All Rights Reserved.
- Mortgage Refinance Rates Drop to 3.25% (3.36 APR) for 30 Year Fixed Home Loan On Consumer Daily (prweb.com)
- Should I Refinance My Home To Pay Off Debt? (debtconsolidationusa.com)
- JPMorgan, Bank of America Forgive Debts that No Longer Exist; Wonderful News, For Whom? (globaleconomicanalysis.blogspot.com)
- BofA: Free second mortgages (bankrate.com)