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Investing In A Home
Doug Rocky
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Not everyone is stock market savvy or willing to risk their savings. But even members that feel comfortable investing in the market know diversification is safer than putting all of their investment eggs in one basket - and certainly smarter than keeping extra cash in a cookie jar or under your mattress.
One terrific investment alternative is a first or second home. There are many advantages. For instance, if you purchased a home 30 years ago and financed $100,000 at 8.00% APR, and made your payments without refinancing or making any extra payments, you would end up paying $164,000 interest. That’s a lot of money.
But imagine if you made additional $150 payments each month. Not only would you have saved $77,000 interest, you would pay off your mortgage 12 years sooner. And when you add in the fact that you would also be able to invest those 12 extra years of mortgage payments, and the interest is usually tax-deductible, paying off your mortgage early becomes an even more attractive investment option.
If you are a first time home buyer, or looking for a second home investment, come to your credit union. Interest rates are the lowest they’ve been in years and that means it’s a great time to invest in a new home.
| Doug Rocky
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