How Refis and High Inflation Turned 3 Mortgages into Assets that
Actually Make Money
Why Paying The Minimum On Mortgages Is Smarter Than Aggressively Paying Them Down
For years, mortgage rates have been only marginally higher than long-term inflation, so your real cost of interest is much lower than it seems.
For example, if you have a 3.5%-interest mortgage and inflation runs 2%, your actual cost is under 1.5% (the calculation is: 1.035/1.02 – 1 = 0.0147, or 1.47%).
For example, if you have a 3.5%-interest mortgage and inflation runs 2%, your actual cost is under 1.5% (the calculation is: 1.035/1.02 – 1 = 0.0147, or 1.47%).
Instead of paying extra against principal, if you put that money in a high-interest checking account paying 1.75%, like Connexus credit union, you’ll come out 0.28% ahead with zero risk.
Instead of paying extra against principal, if you put that money in a high-interest checking account paying 1.75%, like Connexus credit union, you’ll come out 0.28% ahead with zero risk.
So exactly which path is riskier?
So exactly which path is riskier?
Unless you’ve been living under a rock for the past several years, you know that mortgage rates have become historically (some would say ridiculously) low.
Making A Nifty 4 Figures From 3 Mortgages In 1 Year With Zero Effort
Making A Nifty 4 Figures From 3 Mortgages In 1 Year With Zero Effort
To keep private info private, let’s assume a total balance owed of $600k. With that assumption, the combination of low rates, tax deductions, and high inflation would have effectively made me $18,000 this past year!