Let me ask you a question… Would it make sense to have an incredibly low rate on a 30-year fixed mortgage
, but be drowning in credit card debt, living paycheck to paycheck, barely able to make ends meet?
Or would it make more sense
to leverage your credit and a mortgage loan to restructure your finances to increase your cash flow
, save some money, invest, travel, or just simply be able to have some breathing room?
People are programmed by mediocre realtors, loan officers, and marketers to only focus on interest rates. The truth is all lenders offer the exact same rates.
The differences between lenders are the fees associated with each rate, how fast they can close, and how they structure your deal to set you up for the future.
People mistakenly think that the ONLY way to create leverage or any type of benefit with their finances is to lower their interest rate and save their way to financial independence.
I’m not saying it’s not important, but I challenge you to find any wealthy person that got there by budgeting and saving their way to financial success.
Do you think that billionaires wait for rates to drop as a financial strategy to become wealthier? Lowering your rate is the equivalent of working out nothing but your biceps at the gym.
Of course we should strive to get a great rate, but what do the rest of your finances look like? What are your goals? What does your savings account look like? Your investments? The kids' college fund? What does retirement look like for you?