Suze Orman says that people who advise against paying off a mortgage early are wrong. In an NBC interview with Matt Lauer on NBC Today show, Suze Orman says that paying off a mortgage early is the best thing a homeowner can do with their money. She counsels that for most people their home is their most important asset, and should be protected against the risk of loss.
Suze Orman cautions that brokerage companies and stock market analysts have a vested interest in convincing people to invest their money in the stock market. She says that she is always suspect when companies having a vested interest in promoting investments say such things.She also cautions that stocks are not safe investments, and that for homeowners with a mortgage, they are better off paying off their mortgage with extra money instead of investing it in a risky stock market that could lose value.
Suze orman says that maintaining a mortgage while investing in the stock market is too much of a risk. She also points out that most poeple only stay in a home for seven years and that mortgages are front loaded with interest, so that after 20 years, more than half of the original mortgage balance still remains due; and because most of the interest is paid in the early years, there are little or no tax write offs in the last 10 years.
Suze Orman also points out that a homeowner needs about $400,000 earning about 5% to pay off a $200,000 mortgage. After taxes, the investment return would be enough to pay the annual mortgage interest. The problem is that if the investment loses value in the stock market, the investment income will not be enought to pay the amount due on the mortgage.
All homeowners should follow Suze Orman's advice to pay off their mortgages quickly. The fastest way to pay down a mortgage is with a mortgage accelerator. Mortgage accelerators are little known in the United States but have been used around the world for many years. The average homeowner can pay off their 30 year conventional mortgage in as little as 10 years using a mortgage accelerator.
Mortgage accelerators are very effective and are used worldwide by millions of homeowners. The most effective mortgage accelerator is one developed in Australia. If more people knew how powerful mortgage accelerators are, virtually every homeowner would use them.
Another advantage of using mortgage accelerator is that they save time in the homeower's peak earning years. This allows the homeowner to pay off their mortgage in about 10 years, and then apply their money to their retirement account because they are no longer encumbered with monthly mortgage payments.
Using a mortgage accelerator in this type of financial plan, many homeowners will be able to have a retirement account of about one million dollars. This is due to the fact that they will be making large monthly contributions to their retirement accounts and the money will have many more years over which to grow. It is a certainty that if people followed Suze Orman's advice and used a mortgage accelerator, many more people would be able to retire with more money and also not have a mortgage and have to make mortgage payments.
Suze Orman cautions that brokerage companies and stock market analysts have a vested interest in convincing people to invest their money in the stock market. She says that she is always suspect when companies having a vested interest in promoting investments say such things.She also cautions that stocks are not safe investments, and that for homeowners with a mortgage, they are better off paying off their mortgage with extra money instead of investing it in a risky stock market that could lose value.
Suze orman says that maintaining a mortgage while investing in the stock market is too much of a risk. She also points out that most poeple only stay in a home for seven years and that mortgages are front loaded with interest, so that after 20 years, more than half of the original mortgage balance still remains due; and because most of the interest is paid in the early years, there are little or no tax write offs in the last 10 years.
Suze Orman also points out that a homeowner needs about $400,000 earning about 5% to pay off a $200,000 mortgage. After taxes, the investment return would be enough to pay the annual mortgage interest. The problem is that if the investment loses value in the stock market, the investment income will not be enought to pay the amount due on the mortgage.
All homeowners should follow Suze Orman's advice to pay off their mortgages quickly. The fastest way to pay down a mortgage is with a mortgage accelerator. Mortgage accelerators are little known in the United States but have been used around the world for many years. The average homeowner can pay off their 30 year conventional mortgage in as little as 10 years using a mortgage accelerator.
Mortgage accelerators are very effective and are used worldwide by millions of homeowners. The most effective mortgage accelerator is one developed in Australia. If more people knew how powerful mortgage accelerators are, virtually every homeowner would use them.
Another advantage of using mortgage accelerator is that they save time in the homeower's peak earning years. This allows the homeowner to pay off their mortgage in about 10 years, and then apply their money to their retirement account because they are no longer encumbered with monthly mortgage payments.
Using a mortgage accelerator in this type of financial plan, many homeowners will be able to have a retirement account of about one million dollars. This is due to the fact that they will be making large monthly contributions to their retirement accounts and the money will have many more years over which to grow. It is a certainty that if people followed Suze Orman's advice and used a mortgage accelerator, many more people would be able to retire with more money and also not have a mortgage and have to make mortgage payments.
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