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Do  Not  Pay  Down  Your  Mortgage
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Do Not Pay Down Your Mortgage


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  • 1.  
  • 2. New Year Financial Resolution Get your mortgage in shape!
  • 3. Your 2008 Resolutions
    • Pay down your mortgage as soon as possible
    • Buy a new home, second home or investment property
    • Get your credit score in shape
  • 4. Shall I Pay Down My Mortgage?
    • What do most people do when they want to pay down their mortgage?
      • They make additional payments to pay it off faster.
    • But is it a wise decision?
  • 5. Shall I Pay Down My Mortgage?
    • Tax Bracket: 33%
    • Long-Term Capital Gain: 15%
    • Loan amount: $500,000 @ 6%
      • After Tax Rate: 6% - 33% = 4%
    • Investment opportunity: 8%
      • After Tax Rate: 8% - 15% = 6.8%
    • Disclaimer: Please consult with your Tax Advisor.
  • 6. Shall I Pay Down My Mortgage!
    • You have an extra $500 per month for the next 10 years and you have two choices:
      • #1: Pay down your mortgage
      • #2: Invest
      • What is your choice?
  • 7. Do Not Pay Down Your Mortgage!
    • After 10 years…
      • With option #1, you saved $13,625
      • With option #2, you earned $111,412
      • Who made
      • the right choice?
  • 8. Do Not Pay Down Your Mortgage!
    • With Option #2, you have:
      • Minimize your taxes (33% vs. 15%). Long-Term Capital Gain is taxed at a lower rate than regular income.
      • You keep your cash! Cash is king!
      • You have a net gain of $97,787
      • Ok, you have still a mortgage…but you can still pay it off!
      • mortgage financing is cheap..
      • but use it wisely
  • 9. Get In A “Home Buying” Shape!
    • If you buy a new property, you should:
      • Put the lowest down payment as possible and leverage the bank money, not yours!
      • Keep your cash and invest it!
      • Keep emergency funds in case of job loss, health and other unexpected issues
  • 10. Get In A “Home Buying” Shape!
    • If you buy a property and you should work with a professional who can:
      • Optimize your credit history even if you think it is perfect!
      • Advice you on top secret strategies (most business credits cards are not reported on your credit history)
      • Optimize your borrowing ability to get the financing solution that is right for you!
  • 11. The Difference is the Advice
    • The secret of the industry is that money is… UBIQUITOUS.
    • However great down-to-earth advice is NOT.
    • As I a Certified Mortgage Planner (CMPS), I strive to provide with the best advice for your financing situation.
  • 12. Who Is A Good Referral?
    • Great people…
      • who care for service
      • who care for advice
      • who want to establish a long-term relation with a professional
    • Great people…like you!