Float My Mortgage in an investment method that you can use to pay down your mortgage quicker and invest.
The Float My Mortgage method is a very good tool, especially when combined with existing savings and lower risk investments. The bank is always getting their monthly mortgage payment on time, sometimes weeks in advance (so your bank will be perfectly fine with the method!).This type of investment strategy is what the bank’s use all the time (use other people’s money to help finance their own investments). Essentially you are just being the bank.
However if your finances are very tight and you have no emergency fund, then using any investment approach could be considered “risky”. We recommend to use the Float My Mortgage method within a responsible personal finance approach such as:
- A basic personal budget (such as this one from Home Builder Guide)
- With an emergency cash fund (see ideas from Get Rich Slowly)
- With some savings occurring every month (see Money Crashers)
- Have manageable existing debt amount (see Project Debt Relief)
If you are saving some money and are prepared to be disciplined, the Float My Mortgage method is proven mathematically to save you money overpaying on your mortgage. But if you have no savings or backup plan then floating your mortgage out for a year or so can be just prolonging the pain.
However the Float My Mortgage method can be a great tool if used properly – which the membership manual discusses in great detail.
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Gurudas
10 years ago
Property taxes are taxes assessed on prteproy, normally based upon the value of the prteproy. Have never heard of a “mortgage tax” but some jurisdictions to assess a tax for recording prteproy deeds and transfers and since the mortgage usually requires an additional filing there could be additional taxes due to record the mortgage and/or record the lien release when it’s paid off.Most lenders require payment of a portion of the estimated prteproy taxes (and homeowners insurance) with each payment. That’s not a tax but money held in escrow by the lender until they receive the tax bill and pay it. The amount that they pay on your behalf is deductible on your tax return if you itemize.References : Was this answer helpful?