What Is A Mortgage Escrow Account?

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Excited first time home buyers are exposed to a wide range of emotions as they go through the process of signing their name over and over again. Somewhere in the massive stack of documents is mentioned a mortgage escrow account. Some may just gloss over it, while others will put their pen down and ask a few questions. What is a mortgage escrow account, and what it it used for? Mortgage Payment Breakdown A person’s mortgage payment can include several different components. Principal : The amount owed to the lender is reduced by this amount Interest : The amount of […] Read more »

Traditional Second Mortgage vs Home Equity Line Of Credit

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As a homeowner, you have the ability to use the equity in your home as a financial tool. Whether it be starting a business, home improvements, or debt consolidation, home equity can be used to help achieve life goals. Two ways to use that equity are a traditional second mortgage and a home equity line of credit. If you’re new to these terms, you are likely wondering what is the difference between a traditional second mortgage and a home equity line of credit? Commonalities Between a Second Mortgage and Home Equity Line of Credit Applying for a second mortgage and […] Read more »

Why Being Frugal Is Pointless Unless You Crush Your Mortgage

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I’m sure I’m not the only one around here that gets a lot of benefit reading the great tips and insightful behavioral issues that we all have with money here on Enemy Of Debt, however over the course of many years I’ve talked to a number of friends and family in confidence as well as read a lot about how people handle their finances and there is one HUGE pitfall that I’ve noticed almost everyone has. They all have tunnel vision. Most people are so busy, so concerned, so consumed with the immediate things in front of their eyes that […] Read more »

Why You Should Never Use a Home Equity Loan to Pay Off Debt

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Why You Should Never Use a Home Equity Loan to Pay Off Debt

Have you ever thought about taking out a home equity loan to help pay off debt? There are a lot of financial gurus that will advise you to dip into your home’s equity when you have a pile of debt you need to get paid off. But I believe paying off your debt with a home equity loan is not a wise move, and I’ll tell you why in just a minute.   Why Some Gurus Recommend Home Equity Loans For Paying Off Debt But first, I want to cover why some “financial gurus” say you should consolidate your debt […] Read more »

Renting isn’t throwing money away

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How many times have you heard someone say “renting an apartment is just throwing money away?” Maybe you’ve been told it’s better to buy a house when the monthly mortgage payment is equal to rent. It sounds reasonable but it isn’t true: Renting isn’t throwing money away. The dollars left out of the deal Buying a house will cost you much more than just a monthly payment. Rentals often include things like water, trash collection, and even heat that a mortgage just doesn’t cover. A home owner has to pay those on top of their principle, interest, taxes, and insurance. […] Read more »

My New Decade Resolution: Paying Off My Mortgage Early

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As another year comes to a close, people will reflect upon their successes and failures of the past year. They will also look forward to 2014 and set goals for what they hope to accomplish in the new year. Having turned 40 over the weekend, I’m taking a bigger picture approach. I started reflecting on my life in terms of decades. I spent my entire twenties and half of my thirties being financially irresponsible racking up $109,000 of credit card debt. The second half of my thirties was spent recovering, paying off that debt through the help of a debt […] Read more »