Getting Out of Debt

30 Apr

Metro® Boston, Publication Date: March 23, 2011 

By Attorney George Warshaw 

If you own a home, you’ve probably refinanced by now and lowered your interest rate to a level you never thought possible. That’s a good thing. 

Now consider this: get rid of the debt! 

There are two types of real estate investments you can make: one that makes you money and one that saves you money. They’re both equally important. 

The home you buy today will likely be worth a great deal more many years from now – though as we’ve seen, you can’t count on it being worth more on any given day. The investment you can plan is your mortgage. 

By continually paying down your mortgage, you increase your available cash equity and reduce the consequences of losing your job or becoming seriously ill or injured. 

But be careful in how you do it. I’m not a fan of a 15 year mortgage. The high monthly payment may be affordable today, but not tomorrow. Your health and your job are not guaranteed, but the monthly payment will be there for 15 full years.

So take my advice: as part of your overall investment strategy, pay off your mortgage as early as possible but don’t impoverish yourself in the way you do it. © 2011 George Warshaw. 

The foregoing is not intended as legal advice. Consult an attorney to see how or if the foregoing applies to you.

Attorney George Warshaw represents buyers and sellers of homes, condos and investment properties, prepares wills and trusts for inheriting real estate, and trusts that protect your children and pets. George welcomes new clients and questions at  george.warshaw@warshawlaw.com

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