Have you ever attempted to compare your home mortgage to a conventional investment? Or put in another way, has it ever occurred to you that your home loan shares some characteristics with traditional investments?
If you as texas first time home buyer have never reasoned along this line and you have a housing loan taken already, you may be shooting yourself in the leg! This is because your ignorance of this fact may deny you of reaping the maximum benefits from your mortgage as you may end up unnecessarily paying far above what you should generally have paid if you had been aware of and guided by this fact.
The most painful result of your ignorance of this fact is that the difference between what you end up paying and what you should have paid may be so significant that it could have contributed significantly towards your retirement or even towards financing some vital project in your family. Are you following the gist? I am directly and positively saying that you may be ignorantly sacrificing your retirement and the financial future of yourself and that of your family just to enrich your lenders and make them feed fat on the sweat courtesy of your ignorance! Can you imagine that!
I must let you know that home loans or any other loans, for that matter, do not only share the characteristics of conventional investments but are a form of investment in their own right! Are you surprised? No, you should not.
Alright, what do you think you were doing when you signed that The Texas Mortgage Pros contract? You were, of course entering into an investment contract with your bank or whoever the lender was. Your lender decided to give you that home mortgage because, like every other investor, he expected some reward for investing in your home. His compensation or profit would come in the form of the interest you were to pay on loan. I believe you should not be surprised to learn that this profit was what prompted and encouraged the lender to give the credit and enter into that agreement with you.
The housing loan is not only an investment venture to your lender, but it is also an investment enterprise to you the borrower. How? OK, has it not occurred to you that the monthly repayments that you agreed to, may be likened to contributions to a trust fund? That is it! Your profit or reward is the home that becomes your own at the end of the loan term as well as any equity it may have garnered. Also, the satisfaction you derive from owning a home is another benefit you get from this investment. Are you following the logic?
So, what do you do to reap the maximum benefits from this investment called home loan? The first thing is to do your research. Yes, before you approach that lender for a home mortgage, do your research well. Compare terms and conditions between and among lenders and satisfy yourself that you are doing the best thing to yourself when you finally arrive at a decision.
The second thing is that you should never swallow the terms and conditions of your potential lender hook, line and sinker. Negotiate, and you will be doing this from an informed position if you have done thorough investigations.
Third, decide on what kind of home you want and in what location and be sure you can conveniently make your mortgage repayments regularly for that home.
If you do all these diligently, you will surely gain maximally from your home mortgage.