1.08.2007

Turn 8,000 Dollars Into 20,000 Dollars!

So here we are again with John. Now John has just purchased a new house. He wants to pay off the mortgage quickly and effectively. What should he do? First off, check in advance to see how much money a year you would be able to spare on your mortgage. Then, according to that, see what plan you could handle. Remember, the fewer years possible, the better! Next, take out the mortgage for the house and purchase it. But before you buy a house, ALWAYS have a down payment of at least 10 percent. The more the merrier! But anyways, John manages to pay off 20,000 dollars a year. But unfortunately, mortgages accumulate so much interest that only 8,000 of that goes into the mortgage. The other 12,000 pays off his interest. But, lucky John wins 8,000 dollars in a lottery! Lucky John! He decides that money should go into his mortgage, although he’s already payed his 20,000 dollars. But wait- John has already payed off all his interest! That means that 8,000 dollars goes into paying off his house! So John just saved himself an entire year of mortgage tyrrany! So by managing to pay off that 8,000 dollars in the same year he already payed his interest, he just saved himself from paying 20,000 dollars in another year! Just call me Mr. Magician! So don’t buy that used car that you’ve been eyeing. Do yourself a favour, and buy a 20,000 dollar car instead when your mortgage is gone!

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