Mortgage Refinancing To Exponentially Increase Your Assets

The concept and idea of “good debt” and “bad debt” really entered the mainstream from the mid to late nineties. Those who are conservatives will still maintain that all debt is bad especially with the current home mortgage interest rates. Although there’s a part of us that does not like the feeling of owing money to someone else, we know that money is needed to generate more cash.

There is an advantage that most home owners are not consciously aware that they have. And that advantage is that real estate can appreciate in value. Most people take up a mortgage loan at home mortgage interest rates today for the sole purpose of having a home without being aware that taking advantage of the current interest rates for refinancing can be the first step to financial freedom.

Leveraging your cash with mortgage refinancing current interest rates for home loans is making the most of what you have for a good yield.

If it had never came to mind that a mortgage refinance at the current interest rates for refinancing can help you leverage your cash, I bet one day you will realise that you are behind a lot of people in where you stand financially.

Why mortgage refinancing?

Let’s use an example.

Let’s say you have bought a $300,000 house, and you can accumulate a rental of $21,000 a year. This means that it is getting you a 7% return a year. That’s a good return. There are a lot of cash vehicles that wouldn’t even come close to giving you that.

But if you use the house to take up a 75% mortgage refinancing deal at an attractive refinance home mortgage interest rate and end up with a monthly payment of $1000, it will costs you $12,000 a year.

If you minus that from the $21,000 rental, you are left with generating $9000 a year.

And since now you have only $75,000 of home equity in you house, you are now getting a return of 12% from refinancing your mortgage at home mortgage interest rates today. That is almost double your original return. And you will end up with $225,000 liquid cash. Not bad at all.

You can then put that remaining money from your mortgage refinancing into 3 more houses (assuming $75,000 down payment for each house). If everything plays out accordingly, you will be controlling $1,200,000 worth of properties from a deft move in getting mortgage refinancing on your first house with home mortgage interest rates today.

Do note that this is a grossly simplified example to help you better understand the concept of the benefits of mortgage refinancing. You should always seek advice from a professional remortgage specialist.

Do you now see that minding your mortgage has nothing to do with stuffing your hard earned money into long term fixed mortgages?

You are not maximizing the use of your home equity when you continue to obediently service that one mortgage loan instead of taking advantage of current interest rates for refinancing. Paying off that one mortgage deprives you of capitalizing on the funds that can potentially quadruple your personal net worth.

You can guess what I’m about to suggest next. You may have never heard something as radical as the way I’m saying this. But my point is to never fully pay off your mortgage.

This is probably a fully fledged contrary to the idea of fully paying off your mortgage. This is an idea that has been sold to you since you were a kid when you saw your dad stressed out on the mortgage payments to the family house. You learned that a mortgage loan is a scary thing that can create tension within the family. So you have decided to settle a mortgage loan as soon as possible.

Advisers and consultants at the mortgage loan lenders will tell you otherwise and insist you take up a package with good current interest rates for home loans.

What you can potentially achieve when you make a conscious decision to mind your own mortgage with refinancing, it is a good legal way to build up your money and you personal net worth. You are protecting your principal while making a full exploit on profits. The more your money is put on different channels, the more your risks are managed. And you are doing that at a cost of a low or fixed refinance home mortgage interest rate. Think long term assets instead of short term cash flow relief.

The good thing about your house is that you can make use of the equity you have build up in it while still owning it yourself and retaining the value.