FINANCIAL FREEDOM-THE QUEST GOES ON!

MY LAST NEWSLETTER WAS TITLED "15 YEAR MORTGAGE OR 30 YEAR MORTGAGE, THAT IS THE QUESTION!!!" AND DISCUSSED THE ADVANTAGES OF THE 15 YEAR MORTGAGE IN LIFE PLANNING IN ALLOWING YOU TO BE THE ARCHITECT OF YOUR OWN LIFE. WHILE YOU MIGHT PAY A LITTLE MORE EACH MONTH OVER 15 YEARS YOU WOULD NOT HAVE A MORTGAGE PAYMENT THE LAST 15 YEARS AND WOULD SAVE AN AVERAGE OF $100,000 OR MORE AND WOULD ALSO SEE EVEN MORE SAVINGS BY NOT HAVING TO FINANCE YOUR CHILDRENS COLLEGE EDUCATION AND PAY INTEREST ON THAT EXPENDITURE OR SADDLE THEM WITH A LIFETIME OF DEBT!!! YOU WOULD ALSO NOT HAVE TO BE PUTTING AWAY MORE MONEY SEPARATELY INTO A RETIREMENT FUND UNLESS YOU CHOSE TO DO SO. IF YOU HAVEN'T READ THE ARTICLE I WOULD STRONGLY SUGGEST YOU GO BACK AND DIGEST IT AS THE FOOD FOR THOUGHT THAT COULD OPEN YOUR MIND AND FREE YOU AND YOUR FAMILY UP TO A WHOLE NEW LIFESTYLE FOR GENERATIONS TO COME!

IN THE ARTICLE I SUGGESTED THAT MORTGAGE PEOPLE WOULD PROBABLY SUGGEST THAT YOU GO FOR THE 30 YEAR LOAN AS THEY ARE ENCOURAGED BY THEIR INVESTORS WHO ARE GENERALLY LIFE INSURANCE COMPANIES AND BANKS WHO PUT UP MONEY FOR THE MORTGAGES AND MAKE THEIR MONEY OFF THE INTEREST THAT THEY CHARGE YOU, THE CONSUMER WHO IS PAYING TWICE AS MUCH FOR THE 30 YEAR LOAN BOTH FINANCIALLY AND TIMEWISE. SURE ENOUGH, I GOT COMMENTS FROM MORTGAGE PEOPLE WHO STRONGLY SUGGESTED THAT 30 YEAR LOANS ARE THE WAY TO GO--FOLLOWS ONE--I QUOTE: "I always prefer a 30 year amortization for my clients versus a 15 year. The 15 year loan is going to lock them into a much higher payment whereas the 30-year loan gives them lower payments and the flexibility to make an extra payment each year or "when they see fit" to accelerate the paydown. (italics mine) You can get caught in a 15 year loan with the higher payment and end up in default." IN ALL FAIRNESS THIS IS ALL TRUE. I ASKED THIS PERSON WHO IS A MORTGAGE PERSON TO GUEST WRITE THIS NEWSLETTER AND DID NOT GET A RESPONSE. I THEN DID SOME RESEARCH AND DID NOT FIND ANY STATISTICS SHOWING MORE OR LESS DEFAULTS FOR 15 YEAR MORTGAGES OVER 30 YEAR MORTGAGES, WHICH I FELT HIS STATEMENT IMPLIED. I DID FIND AN ARTICLE BY SMART ASSETS SUGGESTING THAT A 15 YEAR LOAN WAS THE BETTER WAY TO GO AND THAT PUTTING THE EXTRA MONEY INTO STOCKS AFTER THE MORTGAGE WAS PAID WAS AN EVEN SMARTER WAY TO PREPARE FOR RETIREMENT. I PREFER REAL ESTATE INVESTMENTS, ALL WITH 15-YEAR MORTGAGES THAT MY TENANTS PAY FOR, ALL PAID OFF FREE AND CLEAR AS MY INCOME SOURCE, WHICH AT A CERTAIN AGE I SELL ON WRAPS AND HOLD THE NOTES AND GIVE UP THOSE LANDLORDING DUTIES AND BECOME THE BANK.