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| More rates and news from Building Wealth Through Equity(Most people think of their home as a place to sleep and a roof over their head; but in reality your home can make you rich. )
Homeowners that know how to leverage the equity in their homes for investment purposes can end up building their wealth significantly.
A November 28, 2006 article posted on Yahoo’s Real Estate page from Inman News, “How real estate debt can make you rich,” discusses a book by a mortgage broker that teaches its readers how to maximize their wealth potential through their mortgages.
“There are two primary reader audiences for ‘Real Estate Debt Can Make You Rich’ by mortgage broker Steve Dexter. The first group of readers will be savvy home buyers and real estate agents who want to learn the inner-secret workings of the home mortgage industry. The second group of readers are real estate investors who not only need to learn how mortgage loans are originated but also how ‘good debt’ can be created to maximize profits.”
Although this may seem like a difficult topic for the typical homeowner to understand, it is actually a simple philosophy once you understand how you can use your mortgage to your own benefit.
“‘I am a merchant of debt. I have been putting people in debt for 15 years,’ Dexter reveals as he shares how the mortgage brokerage industry works and why consumers and investors need to understand its pros and cons. ‘You need mortgage debt, not consumer debt,’ the author explains as he begins this one-of-a-kind ‘how to get a mortgage’ book.”
Dexter’s philosophy is centered on the idea that you can build wealth buy owning real estate combined with leveraging mortgages.
“‘What you owe today is what you will be worth tomorrow’ is the book's theme. By that the author means if you manage your real estate debt wisely, maximize your income tax savings with home ownership and real estate investments, your net worth will eventually become at least what you owe today on your mortgages.”
He also explains the pros and cons of various types of loans on the market, as well as smart strategies for investing.
“The author answers typical home borrower questions about fixed- and adjustable-rate-mortgage pros and cons, interest-only loans, so-called ‘option mortgages,’ and various other mortgage borrower choices.”
One other important part of the book is that it explains the importance of working with a competent and qualified mortgage broker throughout all of your transactions.
Once you understand the whole mortgage process thoroughly, and do all of your homework, it will be easy to spot a phony or incompetent loan officer or broker in a matter of seconds.
Any mortgage broker or industry professional who tells you to pay off your mortgage immediately is a huge red flag.
“Dexter doesn't hesitate to explain how a mortgage broker's skill comes into play in obtaining the best mortgage for the borrower's situation. More important, he shares how some incompetent or inexperienced mortgage brokers take advantage of borrowers. ‘The other part of the answer is greed. The higher rate you get when the loan closes, the more profit the loan officer makes,’ he reveals.”
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