Making Finances Simple. Changing Lives.
Don't believe the title of this message? Then take my challenge without selling your home.....
Try to access “your” home equity without paying interest on that money. Impossible isn’t it? A home equity loan means you agree to make payments that are primarily interest and can plunge you into debt.
“Try to access ‘your’ home equity without paying interest on that money.”
Transferring debt (credit cards, cars, vacations, boats) to a home equity loan gives a false sense of relief. Paying off credit‐card debt feels righteous, but you’re only moving your debt around. Soon the old feelings of entitlement will surface and before you know it the cards are maxed out again, but now you have the home equity loan also.
Now think...when was the last time you had to pay interest on YOUR own money? Home equity is only a mere concept, not a savings account.
Equity (difference between what is owed on a home and the amount it could sell for) is a phantom number. Equity is not cash in a savings account. It does not become cash until you sell the house and give up possession. The home sale proceeds are usually put right back into the next down payment, so it will once again be trapped.
When it comes to home equity, the best advice I can give is to leave it alone...don’t touch! Accessing home equity can limit your options on refinancing to lower rates, and reduces your profits when selling. Years from now when that final mortgage payment is made and your home is truly yours, you’ll be thankful for the discipline of staying away from your home equity. I repeat, home equity is phantom money, not cash! Don’t borrow “your” money!*
* Exceptions apply. On occasion, accessing home equity can be beneficial. Each situation must be analyzed individually.
Contact me before making any home equity moves so we can review your specific goals first...I’m here to help!!