Conventional wisdom tells us, "get a 30 year 5% fixed rate mortgage pay
it for 30 years and own your home. In actual practice things do not
usually go that way. Your family grows, you change jobs and move to
another city, your kids go to college and you refinance to pay tuition,
your company "downsizes" and you need to scramble to start a new
career, etc, etc, etc..

This is not a slight at all on the steady Eddies out there that have
investment portfolios, perfect credit, absolute job stability, a
perfect marriage, a boat, summers in the Hamptons, and a clear cut
plan. Far from it, but then again why are so many of them opting to
free up more money, and take advantage of tax breaks a mortgage and
only a mortgage offers? Many savvy investors are accepting refinance
options at 4-5% and using that money for returns in the 7-12% range.
Who is doing better the guy that is paying down his mortgage giving the
4-5% money back and losing his tax break or the guy that is making an
additional 2-7% income off of his mortgage while his home still
appreciates at 4-20% a year?

This is a bit of a dilemma for any home owner. If you are just going to
go on spending sprees with the additional liquid assets then maybe you
should follow steady Eddie. If you have discipline and can invest
wisely it is a shame to give that 4-5% money back and lose the tax
advantage of mortgage interest.

To learn more about the latest type of mortgage that allows you the
flexibility to choose your monthly payment from a minimum possibly
negatively amortizing payment to an interest only payment or a 30 year
amortizing as well as a 15 year amortizing payment with no penalty.
Learn more about an Option ARM.

http://www.mortgageseeker.biz
Book Mark this article on
http://www.mortgageseeker.biz/OptionARMArticle.pdf