The Best Fixed Rate Mortgage
Is Zero Percent!
Let's face it, the best fixed rate mortgage in the world is zero percent interest and the only way your gonna get that is if you don't have a mortgage at all. (We're going to show you how to do that fast!)
Without a mortgage you have: No mortgage payments, no interest rates, one of best ways to save money, and one of the fastest ways to accumulate wealth. Think about it.......What are you gonna do with all that extra money? Imagine investing $1,000 to $2,000 dollars every month versus throwing it down the drain through a 30 year mortgage or even worse...rent. Below we're going to discuss the advantages and disadvantages of paying rent, paying on a 30 year mortgage, a 15 year mortgage, and paying cash. (There's a reason why they say... "Cash is King!") We'll then discuss some of our modern day problems concerning refinancing rates, loan modifications, and foreclosures. So let's get started...
Paying Rent
Not one of the Best Ways to Save Money
First of all, rent is just a plain waste of hard earned money.
Can you believe that people pay an average of 1,000 dollars per month just for the privelage of living there?
That's $12,000 dollars a year... bye bye! This is an unfortunate and temporary necessity for some folks.
Moving on to the best fixed rate mortgage...
15 & 30 Year Fixed Rate Mortgages
Are Better Than Rent
A 30 year fixed rate mortgage isn't much better than rent unless you have the insight to sell your home at the high of a real estate boom, rent while the market falls, and get back in before it resumes it's climb. This is using leverage and timing at its best! (fat chance or lady luck will find you here).
A $110,000 30 year mortgage at 7% interest will cost you $732 per month and a total of $263,520. They should call this the best fixed rate mortgage ripoff.
A $110,000 15 year mortgage at 7% interest will cost you $988 per month and a total of $177,840. (Still a waste of money, but better than the 30 year term). In fact...
The 15 year mortgage equals less money and less time. So not only have you saved $85,680 dollars with the 15 year plan, you also have whats called ("Time Value").
Say, for the next 15 years you keep paying $988 per month, but instead of paying it to a mortgage, your paying it to your piggy bank (or rather, something safe that draws interest).
That would give you an extra $177,840 dollars (not including interest).
Your now $263,520 dollars richer (again, not including interest) by doing a 15 year term versus a 30 year term.
So how do you get the best fixed rate mortgage of zero percent?
You Pay Cash
Cash Is King!
Most people don't think that this can be done. But it can, and it can happen relativley fast if your willing to make sacrifices now.You have to adabt and start living conservatively. Such as living in a very small apartment with very low rent, no car payments, no credit cards, and doing nothing else that costs extra money. How do you think most rich people got rich? Most of them didn't get there by accident, rather, it came to them through wise choices. The idea here is to live right now like no one else, so that later, "you can live like no one else!" For instance, if you and your spouse make $60,000 combined income, and you learned to live off of $30,000, you could save approximately $30,000 dollars a year for three years and pay cash for a $90,000 dollar house. Better yet, you could pay cash for a lot and throw a cheap mobile home on it for $30,000 dollars or less. This may seem a little bit extreme, but ask yourself what one, three, or five years of sacrifice is worth to change your financial destiny for the rest of your life! Imagine the wealth that you could build with an extra $12,000 dollars a year. Paying cash for a house is the best fixed rate mortgage you can get and one of the fastest ways to accumulate wealth... If your willing to pay the price of a sacrificed lifestyle.
Return from best fixed rate mortgage to ways to save money.
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