The 15 Year Mortgage-A Great Way to Buy Las Vegas Real Estate
Mortgage rates have come back down again over the last few months. Historically speaking, money is extremely cheap. Currently a 30 year mortgage rate is under 4% and a 15 year mortgage can be had for under 3%. These rates continue to be a great opportunity for millions of Americans and future home owners in Las Vegas and Henderson.
I'm a fiscally conservative guy and I advocate prudent decisions to protect you and your family's future. You never know what is around the corner. Yes we draw up blueprints, but as most of us can attest, they rarely go as planned. The reality is that we live on life's terms, not the other way around. We never know what's going to fall into our lap.
Given this reality, I strongly advocate buying a little less home and considering a 15 year mortgage as a means to pay for it.
Yes you heard me correctly: Buy less home than you can afford to.
Here's the skinny on home ownership. It's not an "investment." It's a liability. In fact it's a rather large liability, probably the largest you'll ever have, short of taking out student loans for medical school. For instance, if you bought a home in the Painted Desert community with cash and rented it out, that would be an investment. If you purchased real estate in Rhodes Ranch and it cash flowed positive, that would be an investment. Otherwise you've purchased a liability.
The point is that a home is a place to live and should be seen as such. It should fall inside your budget comfortably and you should plan on living there for at least 5 years. It's not an asset until it is paid for, or if you have substantial equity.
That brings me back to the fifteen year mortgage. Imagine actually owning your own home outright? It's a far fetched notion these days, but not so long ago people actually did this. This is why it's advisable to purchase a little less than you can afford and then put it on a fifteen year note rather than thirty.
Right now nearly 30% of those refinancing are switching to 15 year mortgages. Combine lower monthly payments with the thousands you will save in interest and you will have saved a significant amount of money.
Imagine buying real estate in the community of Aliante at 30 years of age. You could have a home that was completely paid for by the age of 45. A home paid for free, clear and purchased comfortably within your budget.
With that asset comes financial security, a safety net for downturns (personal, economic or other) and ultimately freedom. Isn't that what we all want?