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Originally Posted by MikeSmoke
Best thing you can do....
Take out an interest-only mortgage...
Then take the amount that you WOULD be paying on the principal each month, and pay it into an account that's used to invest where you earn a good interest rate.
When you're paying principal to the mortgage company, you're taking money and handing it to someone who will not be paying you anything in return for it.
I don't have the numbers in front of me so I don't remember the exact time frame, but at a decent interest rate, your "principal" invested elsewhere will accumulate enough (with compounding) to pay off your entire mortgage in the area of 15-18 years or so.
You can thank me then.  |
That sounds great in theory, but the truth is you can't cheat the system. The only reason you may come up ahead with this strategy is because you take on more risk. It's a great strategy if your investements work out, and your house appreciates, but if things don't work out, in 10 years you could be left without a penny to your name....