Many homeowners are uncertain of how best to manage their mortgage. Some homeowners develop a plan based on various factors including their yearly income, how much the home is worth, how much they owe, and more. However, other homeowners don’t know where to start.
Well, paying down your mortgage is typically a better plan than investing. Read below and watch the video to learn more.
If course, the first two questions to ask yourself are “What’s your income?” And “How much do you owe?” After determining the answers to these questions, your next best step is to focus on paying your home off. As the experts of the Ramsey Show explains is that many successful millionaires he’s studied have shared the two common habits of allocating their first few millions towards 401k and a paid-for house. The paid-for house raises in value, which is a beneficial result.
The Ramsey show experts see that millionaires aren’t borrowing large amounts of money to invest in other options. Instead, they’re using the increased cash flow from a paid-for house to allocate towards investing afterward. Watch the video here to receive more guidance on the benefits of paying your mortgage down over investing.