What is the conspiracy?
It is funny how through propaganda we can be manipulated into doing and thinking things that we know don’t make any sense. Here is a major example of what I am talking about. We all know that debt is bad and that it impedes our retirement. We all know that debt causes financial instability. Most marriages end in divorce and finance (which really is debt) is the main reason for this. So why do we all stand in line to buy houses so that we can build borrowing power and security?
Let’s go back to Finance 101. What is an asset? What is a liability?
An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket. Now, let’s look at your house. The only thing that your house is putting into your pocket is the ability to borrow more money! Yet, it is taking plenty money OUT of your pocket! So unless your master plan is to buy a big house, live in it, sell the house at retirement and move in with your kids (while you live off the money you sold the house for), I think it is fairly safe to say that your house is not an asset, it is a liability! Read more »
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Home loans are loans that are based on the value of your home. You can use this money to help you out under many circumstances. They do not need to be used for a specific purpose like many other loan types. You can use them to consolidate debt, buy a new boat or car, to remodel a room in your house, or to finance a vacation. You will be able to do just about anything you need to do with these loans. Read the rest of this entry