How to Get a Second Mortgage with Bad Credit - Mortgage TEHAMA CA
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In this Article we shall focus on answering some common queries of Tehama CA mortgage borrowers:
Should Tehama CA mortgage borrower Retire With A Mortgage or Pay It Off?
I have seen two sets of borrowers. One who believe in managing money and never paying off the mortgage and the other who want to pay off the mortgage.
The ideal for any borrower when he is retired is the Positive Cash Flow.
When the borrower is young. He refinances his home over and over again on a 30 years mortgage. While the payment is low but the lenders are making the most of the money out of such borrower. It’s because you pay off 5 years. Your kids are growing and expenses are mounting. So you again go back to a 30 years. Payment is low. Savings are there but you end up paying lot more to the lender. This is one set of the borrower i have seen who bank on property value rising and because they are young they may sell the home. There is capital gains advantage also given to the borrower on the amount gained on sale of property of up to $ 500,000. While the American dream is owning a home. This class of borrower don’t like to pay off the mortgage. If they have paid $ 1000 on interest on the mortgage and they were to fall in 25% tax bracket. They like the idea of writing off $ 250 on taxes but manage money all the way till they are retired and make sure they have a positive cash flow.
The other set of borrower is the one who likes to pay off the mortgage and doesn’t want to carry any debt but the ideal state of nothing but just cash flow. When they refinance their home. They always go for shorter term and in such a way that the payment doesn’t shoot up to what they can’t afford. In other words. They take a 30 year loan and when they have paid 5 years. They like to see if they can go with a 20 year loan or a 23 year loan. Meaning shorter loan term along with lower rate and work out their mortgage that ways. The idea is that they want to be debt free when they retire. Whatever amount they have saved in their IRA for retirement fetches them with only positive cash flow as they wouldn’t have no debt.
It’s really each to its own and how one defines what is peaceful life to him.
Call Tehama CA mortgage expert below to get you the lowest mortgage rate on your refinance.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower.
30 yr fixed refi 3.807% APR 3.775%Rate | At 0 pts
20 yr fixed refi 3.500%APR 3.500% Rate | At 0 pts
15 yr fixed refi 3.044%APR 3.000% Rate | At 0 pts
10 yr fixed refi 2.940%APR 2.875% Rate | At 0 pts
Artical by Roger Shanker
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