Listening to a popular radio show this afternoon, I heard caller ask about refinancing from a twenty year mortgage into a thirty year one. The host asked, “would you borrow against a paid off home to infest?”
The host went on to point out how you need to pay off your home as fast as possible.
Sorry, but mortgages are one of the best wealth producing vehicles out there. As Dr. Dave says, “we should wake up each day and figure out how to get more mortgages.”
If you’re new to this blog then these words must sound crazy. They probably go against every piece of financial advice you’ve ever heard.
But mortgages are the cheapest form of money you can buy. The trick is to use the money to buy cash flowing assets from which you can pay off the mortgage and then keep the cash flowing asset.
The concept of investing cash from your home and is known as equity harvesting. I used a Heloc on my house to invest in VNR. The results have been great.