Many homeowners don’t realize that when the economy crashes and they can’t make mortgage payments, lenders are more likely to foreclose on homes with high equity.
Why? Because if you’ve been making extra principal payments, your balance is lower, and the bank sees an opportunity to recover their money faster by selling your property.
In 2008, my home’s value dropped $400,000—from $1.5 million to $1.1 million. But because I had it mortgaged to the hilt, I was in control. My money was liquid and safe, so I could still make payments. If I had sent extra principal payments, the bank would have had a $400,000 cushion to foreclose on me and sell my home.
Liquidity is power. If you’re serious about long-term, tax-free growth, claim a FREE copy of The LASER Fund at laserfund.com. I’ll cover the book—you just cover shipping!
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