It's not secret that the US Dollar is worth less and less over time. As the graph above shows if you had $10,000 in 1964 it would be worth only $1,002 in 2024. On the other hand if you invested in real estate by putting $10,000 down on a $100,000 home in 1964, that home would be worth over $1,000,000! Another way you can hedge against inflation is to make an extra payment each year or make your payments every two weeks. For example, let’s say you have a $500,000 30-year mortgage with an 8% interest rate. Your monthly payment would be approximately $3,700 a month. Making one extra payment of $3,700 a year would cut your mortgage by 7 years and save you up to $220,000 in interest. Some people make their payments every two weeks, and that’s how they get the extra payment a year. If you have a larger mortgage balance than 500,000, the payment is bigger but the savings will be too. This is just one way you can create more equity in your home. If you are interested in buying real estate (or selling your current home and upgrading), call or text me today. DONALD KEYS Selling Homes Since 2006 HomeSmart (602) 750-1744 .
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AuthorDonald Keys has been selling homes full-time since 2006. Archives
September 2024
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