Table with wooden houses, calculator, coins, magnifying glass with the word Loan agreement. The contract for the purchase of a house or apartment on credit. Loan for property and real estate. Flat lay

The origin of words can be fascinating and at times ominous. That is why the word mortgage is intriguing! 

“Word nerds will notice an eerie root word in ‘mortgage’ — ‘mort,’ or ‘death,’” Weller writes. “The term comes from Old French, and Latin before that, to literally mean ‘death pledge.’”

For many US homeowners that is the case.  They believe that getting a mortgage, something that they are pledging 29% or more of their gross monthly income, is a life sentence.  At we look at things a bit differently.  We ask a simple question:

“What does the end of your loan look like?”

Smart money homeowners are asking this question.  Why?  Simple: a mortgage is not a means to an end in terms of homeownership, it is a vehicle in which to achieve financial goals.  So, what does the end of your loan look like?

In the current economic environment, people are looking at the cost of money and their financial picture a bit differently:

  • Does it make sense to refinance and add tax-deductible years to your mortgage to pay off debt to maximize cash flow?
  • Is it time to trim off 15+ years off your mortgage, because the current rate environment allows you to refinance to a 15 year or 10 year loan?
  • Is it time to refinance to ensure you have liquidity for college tuition?
  • Want to start a business?  If you can get a business loan, they typically range 10%+. Use your most important asset (your home) to your advantage.

Take scenario one as an example:  What if in 5, 10, 15 years you could receive a 30% increase in your income?  What would that do for you or your family?  What could that do for retirement?  When you no longer have to pledge a huge amount of your monthly income to a mortgage, cash flow increases 10 fold!

You are NOT pleading until death 30% of your money to a mortgage company or bank.  The end of your loan is within your sight.  Today’s rates are allowing you to see the future, and it could be mortgage free!

Let’s have a conversation today about what the end of your loan will look like:

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