What Is Mortgage and How To Use In 2020

What Is Mortgage and How To Use In 2020

If you're buying an investment property, most people, at least with the systems that we implement and use, you're typically not going to hold on to a property past five years so we willusually tell people to do a 30-year loan because cash is king today, the more cashyou can keep in your own pocket today, the better you are so instead of payingmore to the bank in a 15 year loan, you may opt to pay less to a bank in a30-year loan so that you can keep more cash So a mortgageis a loan, you're getting money from the bank, right?

Or basically, the bankis paying the sellers but you're borrowing that from the bank, you'repaying interest on that mortgage and so that's why the banks are willing to doit

because they're not only getting their principal back or the loan amountthat they lent you but they're also earning principal.

Over a 30-year loan,that can equate to three times as much as the original loan value which is whya lot of people like to pay off their homes faster but I'm telling you rightnow, in investment real estate, you don't necessarily want to pay off that loan asfast as possible, you want to use the money to your greatest

Moneytoday is always more powerful than money tomorrow.

Cash is king sothe more you can keep in hand and invest if you are reinvesting in any way thebetter for you.

Mortgage, a mortgage, it is a loan, it is debt. A lot of peopleare concerned about debt, of course, we're taught in our society to become reallyconcerned about debt but I will tell you this, debt can be good

Don't do so much of the consumer debt, inother words, don't rack up credit cards to go buy clothing and toys anddifferent things like that but if you're buying

real estate with the purpose ofearning money, with the purpose of doing a real estate type of business, with thepurpose of growing a portfolio, that can be what we call

good debt, taking on amortgage or getting a mortgage from bank, getting a loan from a bank that you'reeven gonna be paying interest on, if you're earning more an interest then you're paying out the bank in interest that can be a really great investmentbecause and the payments that you're gettingfrom the home are not only paying off your property, paying

That monthly payment which includes both the principal and theinterest but if you're doing it right, it's also gonna pay you above and beyondwhat those monthly payments are.

This is what cash flow is, this is why mortgagesare great if used properly in a real estate investment.

Okay, so by now youshould be ready to purchase your first home right?

You're gonna go out and getthat mortgage, you know what it is.

Hopefully you understand the differencebetween the 15 and the 30-year, right?

I'd love to hearwhat you're gonna do and how you're gonna go to and maybe the banks thatyou're ready to talk to you.

What Is Mortgage and How To Use In 2020 What Is Mortgage and How To Use In 2020 Reviewed by Adpcreation on July 22, 2020 Rating: 5

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