Hurricane Katrina has taken it’s toll up in a 4 State region along the Gulf Coast. Many homeowners have been left at with huge repair and little or no insurance money to help with the fix-ups. A New Millennium Home might just be the solution for Future Katrina Like Disaster
Many People are stuck in the mentality that getting a 30 year fixed rate mortgage and then making extra payments to the bank to pay off the mortgage sooner is the best way. A Homeowner with a $200,000 would pay $1,135 a month. If they were to add $200 additional each month their payment would be $1,335 a Month. Lets say they pay on this mortgage for 10 years and a Hurricane Katrina Like Disaster hits and destroys their home and for whatever reason the Insurance covers little or none of the damage what do they have left Nothing and they still owe over $130,000 on the Home Loan.
A New Millennium Home Loan works on the principle of getting a loan with a low interest rate and investing the difference. A power option ARM is available on a $200,000 loan with a payment of $734 for the first 5 years.
If a Homeowner were to get a loan like this and invest the $600 a month savings at an 8 percent return he would have over $109,000 in the investment account at the 10 year mark. $109,000 that could be used to rebuild. If that same homeowner would continue to make this $600 a Month payment for 254 months (The Time it took the Previous homeowner to pay off their house) He would have over $395,000 in investments.
About the Author
Mike Makler Offers Financial Services (Mortgages,Life Insurance, Annuity) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri
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