Our parents and grandparents taught us to find a good job, buy a house, and then pay it off as soon as possible. That sounds great except that things aren't the same today as they were for our parents and grandparents. Today we change jobs more often, move more often and refinance every 3-4 years. Yet, given these statistics, most Americans still choose a 30-year fixed mortgage to finance their homes and many put off saving for retirement until their mortgage is paid off. These are two big mistakes that Americans make in managing their money-mistakes that are literally costing households millions of dollars each year. Your home can be an even better investment if you learn to optimize this asset. First, you will need to realize the following:

Equity Is Not Liquid-

Ironically, equity in our homes feels like cash until we need it. But, when you need it most you may not be able to qualify to get it.

Equity Does Not Earn A Rate Of Return-

Our homes will appreciate, based on the supply and demand found in the market, regardless of whether the home is financed or owned free and clear. However, equity it self earns no rate of return.

You Lose Safety With Each Principal Payment-

As you pay down your mortgage, you increasingly have more equity to lose while the lender is in an increasingly safer position.

The Tax Deduction Is Reduced As The Mortgage Is Paid Down-

With each principal payment, you are reducing the mortgage interest tax deduction the government affords us. For most of us, mortgage interest is our largest deduction.

Equity Is Not The Same As Cash In The Bank-

Cash in the bank is the same as cash in the bank.

Banks Get Rich By Borrowing Money At A Lower Interest Rate Than They Lend-

Would you like the opportunity to think like a bank? I can show you how to achieve wealth by managing your equity. Email me for free literature on how to do just that