Over the years many home owners have lost site of a goal that I think ever homeowner should have.
The goal is: PAY OFF YOUR HOUSE BEFORE YOU RETIREMENT
Unfortunately banks, home improvement companies, mortgage broker, loan officers, homeowners fell into a trap. They started using their home as a bank. They started using the home to pay off credit cards, finance cars, take trips, make home improvements.
Of course the mortgage industry encouraged this action. They make money each time you refinance. Banks offered home equity loans up to a 100% of the houses value. Instead of paying down the mortgage many home owners were going in the opposite direction. They were increasing the debt. Increasing the years of the mortgage.
So as a first time homebuyer plan to pay off your house. Plan to make home improvements without taking out a home equity loan. Live within your means and don't use your house as a bank. There are ways to pay off your house early. But the bottom line is you will be glad when you retire to have your your home paid off.
It will be great to have no mortgage payment in your golden years.
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I am walking in the Tampa 3 day cancer walk in October. Support cancer research by going to www.the3day.org/goto/marianneravary and donate as much as you can. My wife got to live 20 years after finding out she had breast cancer due to advances in cancer treatment. Be part of the team and help me. I would like to be able to give some other "special lady" (like my wife Marianne) more days on this earth. If we can give another lady another night to enjoy with friends, an extra week to laugh & hug her kids, an extra month to love her spouse, or an extra year then our money will be going to a good cause. The grants from the Susan G Komen 3 day walk have been instrumental in cancer research. Help me give more time to somebody else please donate to the 3day walk. Thanks
Russ Ravary your Metro Detroit realtor
I don't know if paying off your house is what every planner would suggest. It can be a goal, and does give some security. But leveraged real estate is one of the best ways to build wealth. Leveraging for "toys" is not a good idea. Perhaps a suggestion not to leverage your home to buy what you can't afford already is a better idea for first timers.