Miami, FL (PRWEB) January 28, 2005
Millions of Americans feel theyÂre building a bigger nest egg by owning a home should they feel so sure?
"Probably not...for most Americans their pot of gold turns out to be fool's gold" says Garth Gibson, an MBA graduate and ten year veteran of finance he writes about common real estate investing mistakes at http://www.RealEstateFortune.Info.
Below are five questions homeowners can use to find out if theyÂre making financial blunders reports Garth.
Answer true or false to the following:
Â· I have more than 10% equity in my home
Â· I put down a large down payment on my home
Â· I make extra payments to pay down my mortgage principal faster
Â· I have a 15 year mortgage
Â· I own a single family home
"If you answered true to two or more questions then you're throwing away more money than a Donald Trump wedding," says Garth.
One of the ways according to Garth to turn your home into a better nest egg is to have the right financing. He explains how by using the example of a home with a market value of $200,000. "For homeowners with excellent credit they could have a monthly mortgage payment of $400 or less using the right adjustable rate mortgage,"
But he says instead most homeowners end up paying $1,200 or more a month using fixed rate mortgages. "That's like someone going out an literally burning $1,000 every month for the next 30 years, you would think someone is a little crazy to do that, wouldn't you?"
Banks help to perpetuate the myth that adjustable rates are riskier says Garth. "The reason for this is all about cash flow," Fixed rate mortgages set the homeowner up with higher monthly payments. Banks can use that extra money to make more loans. "Take the extra money you are saving with adjustable mortgages and invest it."
If you would like to learn more about right and wrong wealth tactics a free tutorial is available. You can get a copy of "Home Sweet Piggy Bank...Six Easy Money Moves So You Make Mortgage Payments To Yourself And Not The Bank!" write to Garth ÂSix Easy MovesÂ Gibson, Box 1159, Miami Shores, FL 33153
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