It seems kind of silly to have to ask the question, "is that a bedroom?" when you see what obviously looks like one. Our friend, you might just be surprised that what you see might NOT be a bedroom
Mark Zuckerberg Has A Mortgage
Did you know that Facebook founder Mark Zuckerberg worth an estimated $53 million dollars, has a mortgage? He could easily pay cash for his home, so why doesn't he?
Home loans come with an advantage, to anyone, rich or poor. Economists say that every investment or purchase you make comes with an opportunity cost.Using your savings money to make a large down payment means you would probably bypass opportunity to invest in stocks, which would be making you money. The down payment is an investment to you in the way of an equity over time, eventually netting a profit. Stocks and other investments could be netting you money, now. Keeping money in a checking account has kind of the same theory, it's sitting there, and might make a few dollars over time. If the money was actively invested in stock, it could be earning money everyday rather than be sitting in a checking account, dormant. In the case of a home purchase, borrowing to obtain a mortgage instead of paying cash, you can have your house and maintain control over your money as well.
If you're not in the league of Zuckerberg, the opportunity cost is still an option for you. If you make a modest income, you have more opportunities to save money with a mortgage. Homeowners with incomes less than $250,000 could be eligible for the mortgage interest deduction. This benefit allows many homeowners to reduce their taxable income by the amount paid in interest each year. Check with your tax advisor before filing, as this is not meant to be tax advice, but that could make your "real" mortgage payment even more affordable. The typical homeowner can learn something else from wealthy mortgage borrowers: the benefits of an adjustable rate mortgage (ARM). Mr. Zuckerberg refinanced his mortgage a few years ago, trading in a 1.75 percent adjustable rate mortgage for a 1.0 percent ARM. ARMs allow you to pay a lower interest rate, and when the sums involved are huge, that lower rate translates into big savings.
Home finance can be a whirling bunch of question marks, can't it? We at The Shields Team have reputable and trusted lending partners who would be most glad to sit down with you and look at how you could be building wealth and maintaining a mortgage. Let us introduce you! Call our office at (423) 433-6517to schedule a no obligation appointment to talk with you. If you'd rather stop by and chat face to face, come by our office anytime inside Keller Williams Realty at 1033 Hamilton Place, just off State of Franklin in Johnson City.
Wes Shields, Team Owner and Listing Agent for The Shields Team at Keller Williams Realty of Johnson City Tennessee, has a long and very impressive list of accomplishments in his 10+ years in the real ....
Latest Blog Posts
You've become obsessed with your credit score, guarding it carefully, and keeping a close eye on it to have everything in order when you apply for a home loan. That score will will not only affect