mortagesandforeclosures

by Leonardo Marchan

Home equity has gone down to more or less 40% in most parts of the country. And just like stock investments, it would probably take some time before it regains its value.

Selling your home and taking the advantage of buying a much cheaper house thats on sale in your neighborhood might not be the right thing to do at this point.

Take note that securing a home is not the same as investing on stocks. Stocks can be traded; your home is a capital investment. So essentially, it is easier to trade stocks than trade homes. Also, giving up your home may require you to shoulder major tax consequences.

If you are considering selling your home there is one negative side to this. The right time to sell a home was approximately 2 years ago and you are just caught up in an unfortunate situation. Like the stock market, home prices will stabilized and your home value will continue to grow in the future.

How to turn your home into an investment and able to use this to get money?

One way to look at your home is like an investment. Over time your home equity should grow again and you should be able to pass it on to your kids or tap into the equity when you retire.

If you do not need cash and can afford to pay for your dues right now, time is on your side and you should be patient.

So what are the best ways to turn your home into an investment?

One, you can allow your home equity to build up. Once your home is fully paid off, you may apply for a reverse mortgage on your property and use the money when you retire.

Thus, in order to get your mortgage accounts settled before you retire, you have to pay more or accelerate your payment by using the biweekly method. This allows you to pay off your debt before retirement

Second, you can pay off your mortgage and put up your home for rent or for lease. You may consider purchasing another property. Doing this would get you to save enough for your retirement.

A third way of looking at your home as an investment, is that every dime you spend for paying off mortgage should not necessarily come from your retirement savings. In fact if you do some planning in advance and if your home appreciates in value, you could even sell your home in retirement, buy a new home at a lower price, and keep the difference as investment savings.

It is understandable that sometimes given your lifestyle, at the end of the month, there almost is nothing to save. When you pay off your mortgage before you retire and buy a cheaper property when you retire automatically generates savings.

This may not be the best financial strategy but is certainly one way of accumulating retirement savings.

The fourth technique is considered the best way to paying off your home before you retire. It is known as the mortgage acceleration method.

The mortgage acceleration program keeps your retirement savings safe. When you choose to follow this method, you will be able to get rid of your mortgage debt sooner without spending a lot. The fact that it slashes 13 years off your mortgage account makes it an undoubtedly a great investment.

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