Most people simply do not understand the power of using their home as a Wealth Creation Tool. How many people do you know who have lived in the same house for 10, 15 or more years and have virtually no mortgage, you know the type of 'House Rich Cash Poor'. There are strategies that homeowners can use to work on Building Wealth. Part that house Rich
Did you miss the Going Out of Business Sale at the Bank last week? They sold $ 100 bills for only $ 97. Darn you missed. OK the bank if they did, how many $ 100 Bills would not go out of business sales, but buy? I would back up the SUV on the bank and see how many Bills I could get in and then go back for as many trips as I could. Your bank is Selling $ 100 bills for $ 97 a backup of the SUV.
The equity in your home is like that Bank. If you can borrow money at 2% or less qualify and turn around and achieve return of 5% or more reasonably safe with Equity indexed annuities. In most cases, the money you borrow is tax deductible while the money you Indexed Equity Tax Deferred Annuity is.
Taking a closer look, if you borrow money at 2% and turn around and get a return of 5%, that means your net return is 3%. Evey For $ 100 you borrow you place $ 3 in your pocket. Wow really the bank is selling $ 100 Bills for only $ 97.00
Many lenders offer mortgages with fixed at 2% for the first 5 years of payment. What are you waiting for a backup that SUV and get your $ 100 bills today.
Mike Makler is a financial advisor in St Louis Missouri area specializing in Real Estate Loans and annuities. For more info call Mike at 314 398-5547 or visit Mike's homepage
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