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Financial Freedom Starts with a Low House Payment

Published or updated October 25, 2012 by Glen Craig

Is achieving financial freedom an important goal in your life?

If it is, don’t follow the conventional wisdom of buying the most expensive house you can afford.

Sure, by buying the biggest house you can afford you can grow into it, live in it longer and maybe even avoid a costly trade up in a few years. Fair enough.

But when it comes to achieving financial freedom, buying the most expensive house you can afford is the exact opposite of what you want to do.

In fact it can be said that the more expensive your home is the less chance you have of ever attaining financial freedom.

Expensive homes and financial freedom are what you might call “mutually exclusive”—having one reduces your chance of getting the other.

How could that be?

A house determines general consumption patterns

What is Mortgage Amortization and How Does it Work?

Published or updated October 23, 2012 by Glen Craig

Paying off a mortgage is an overwhelming task.

A mortgage is a big debt—almost as big as your house—so the best most of us can hope to do is to shorten the term by prepaying as much of the loan that we can as quickly as we’re able.

Why should we want to do that?

Owning your home free and clear is a good place to be. You’re living in your home with no mortgage payment and that’s when saving money and life in general get easier.

But there’s something more.

The cumulative interest on mortgage loans makes your loan balance even bigger.

A mortgage of $200,000 will require nearly $350,000 in monthly payments over a 30 year period. Anything you can do to shorten the term can save a lot of money.

What is Mortgage Amortization?

Alternatives to Foreclosure

Published or updated March 30, 2013 by Miranda

If you are concerned that your home might become a foreclosure risk, you are probably casting about for other options.

Foreclosure can impact your credit score, and make it difficult for you to purchase a home in the future — at least for the next two to four years.

When you are trying to avoid foreclosure, you do have some options.

However, it’s important to realize that you will have to meet certain requirements in order to qualify for some of these options. Additionally, some of your foreclosure alternatives will impact your credit score, even if it isn’t impacted as much as it would be with a foreclosure.

Here are some of your alternatives to foreclosure:

Mortgage Plan to Help Homeowners – $26 Billion Settlement with Big Banks

Published or updated March 30, 2013 by Glen Craig

If you’re wondering when help will arrive for your underwater home, on February 9^th, 2012, a giant step forward was taken on your behalf.

The Obama Administration announced a settlement with five of the largest banks, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, and attorneys general in all states with the exception of Oklahoma.

The $26 billion foreclosure settlement brings to a close the litigation surrounding the use of robo-signing in the foreclosure process and may provide much needed relief for many of the nation’s underwater homeowners.

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Don’t Underestimate the Cost of Living When Deciding Where to Live

Published or updated October 23, 2012 by Melissa

I live in the suburbs of Chicago, and recently, after 11 years in the same apartment building, my husband and I re-entered the renter’s market.

When we first began renting at our last apartment, the two bedroom apartment was a bit too big for us. Three kids later, we were bursting at the seams.

However, we were shocked to see that 3 bedroom apartments in our location rent for $1,300 to $1,800 a month. Houses can rent for as much as $2,500 to $2,800 a month.

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A house determines general consumption patterns

What is Mortgage Amortization?

Here are some of your alternatives to foreclosure:

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Houses Are Often Out of Reach

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