In the period from 2008 to 2012 there is a noticeable change in the mindset of mortgage debt. The emphasis is no longer on the postponement, but the pay off.
To achieve maximum tax benefit we have let mortgage smear us that afterwards have been given a very bad choice. Until 2008 were mainly linked mortgages and interest-only mortgages. With this mortgage emphasis on the lowest possible monthly payments. This was advised to borrow loan amount to get as high as possible. The homeowners also were pleased with it, without realizing the consequences of these mortgages by falling house prices and a poor economic climate.
Many homeowners have later regretted the choice for an investment mortgage or an interest-only mortgage. Due to the very poor stock market conditions in 2008 and 2009, the share prices have gone hard down. It will take years for this dip again to bow in return. In a conversation with a mortgage advisor can calculate what the best choice is with your current mortgage. You should also keep in mind that it is also an option to leave unchanged the mortgage and you are just starting to pay off the mortgage in savings. This saves you the expense and hassle of converting, and you keep paying into their own hands.
Until 2008, was the approach to keep up the mortgage debt in connection with the tax benefits. Since the sharp fall in house prices homeowners think differently about this. Now searching for ways to revise and reduce the mortgage debt the previous choices. Until 2008 could be borrowed annual income simply to six times. Afterwards to ensure a lower mortgage amount must be paid extra.
In the book ?? Mortgage Free ?? by author Gerhard Hormann explains how fast you can pay off your mortgage. The author himself is going to significantly cut back on its spending in order to pay out annually as much as possible on the mortgage. Expensive vacations were not made and the expensive fuel guzzling car has been replaced by a small fuel-efficient cars. In this way, he managed to redeem additional 15 000 annually ??. For most households, it is not possible to use such sums annually to pay off extra, but counts each repayment. A small monthly savings will give you every month advantage.
Not for everyone, it is necessary and prudent to pay off extra. For example, an endowment mortgage allows for full repayment at maturity. Before you take on such a loan will repay you need additional information at your mortgage advisor what the conditions are and whether additional repayments is wise. On an interest-only mortgage you need extra repayments. Otherwise it remains debt because always exist. After the term of the mortgage debt remains fact still exist. The value structure in the investment mortgage is also far from certain. The deep dip in 2008 and 2009 it is likely that you do not realize the intended return on maturity of the mortgage. Extra repayments may also be wise in this mortgage.