Equity Management

 

The equity in your home may be your largest asset, but it has no actual rate of return-it is a static amount that only grows or declines as the value of your home increases or declines.  Equity Management proposes to create a rate of return on the equity in our home, where, previously, there was no return at all.  Equity Management advisors work with investment consultants who safely invest your money at a higher rate of return than the interest rate of your home mortgage or your home equity line of credit. 

 

Proponents of Equity Management encourage homeowners to make use of mortgage loans with interest-only payment options so that they can invest on a monthly basis the amount of money that would go towards paying down the principle in a fully amortized loan.  By paying nothing towards the principle, the mortgage loan is not reduced, but the home owner is theoretically investing at a higher rate of return than the interest rate on mortgage loan.  By investing each month the homeowner is creating a pool of funds that could pay the house off quicker than a fully amortized fifteen year mortgage, if that is what they choose to do with their growing nest egg. 

 

Many fans of Equity Management are also fans of the Home Ownership Accelerator, and make it a part of their real estate investment and Equity Management plan.  Go to PacificInland.com for more information on the Home Ownership Accelerator program, which we offer as one of our many in-house mortgage programs.

 

Equity Management advisors encourage homeowners to “harvest” the equity in their home through refinancing and invest it at higher rates of return that they are borrowing at.  For those who have equity to tap and the discipline to invest the money without spending it frivolously, equity management can be a dynamic method to radically increase personal wealth.  Equity Management has worked to create increased wealth for thousands of people.  Working with trustworthy professionals is essential when borrowing or investing.

 

Recently, when discussing Equity Management on the “Let’s Talk Real Estate” radio show (Thursdays at 1 P.M. on AM 1080, KSCO), a caller questioned what would happen if a homeowner “harvested” equity and invested the money and then the value of the home decreased.  My reply was that the harvested equity, if safely invested, would continue to grow regardless of the decline in home value.  If the home owner wanted to sell and owed more than the current home value, they would have to cash in some of their investment money to help pay off their loan. 

 

For those homeowners and home buyers who are interested in exploring the field of Equity Management, Pacific Inland Home Mortgage offers many attractive loan programs including the revolutionary the Home Ownership Accelerator. We also maintains a list of competent and trustworthy investment professionals who can be consulted to evaluate the possible benefits on an individual basis.  For more information and/or to arrange a confidential personal consultation, send an email to jchubb@pacificinland.com or to your preferred Pacific Inland Home Mortgage consultant.

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