If you’re like most people, you may think paying down your mortgage by making extra principal payments is the best way to achieve financial security. But this isn’t usually the case! By paying off your mortgage, you’re eliminating one of your best partners in achieving financial security–Uncle Sam’s mortgage interest deduction. Plus, the equity in your home pays zero return and isn’t easy to access if you need it in a hurry, especially in today’s mortgage environment. A better strategy is to keep your mortgage balance as high as possible and put the equity into secure, collateralized liquid investments that pay a return. This is known as equity repositioning, and it offers several advantages:
* You have quick access to money.
* Your equity generates income instead of just sitting there.
* You earn substantial tax deductions which can be
used to increase your investments further.
* You can save even more tax by investing in tax-free retirement accounts.
* You’ll eventually save enough to fund your retirement AND pay off your mortgage!
For a free analysis to see if equity repositioning is right for you, give us a call today at (512) 799-0133