Extra Payments? Why…
One of the pieces of advice given in the real estate industry is to make extra payments to payoff your home early. This sounds good and makes sense. However, do you want to pay extra into a home and see the equity evaporate as home prices drop? No of course not. You will cut down the amount of interest you pay and as a result payoff sooner. This is all good and advice that is sound. Pay more principal and less interest. This can be done without gambling on equity that may or may not be there. If instead of making extra payments, those amounts went into a variable universal life policy, the cash value that accumulates can overtake the amount of interest saved by making extra payments. The catch is that the homeowner must stick with the plan and invest long term. You do this when you purchase your home, why wouldn’t you do this to eliminate the debt on your home? You can then draw on the cash value of the policy and make one lump sum payment to eliminate your home payment. For new home owners wanting more information visit . Select Contact us and fill out a form with your specific information. I will be happy to illustrate what I can do to help you.
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