Monthly Archives September 2016

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What The Heck Is Exactly Mortgage Interest Rate?

What exactly is mortgage interest rate? First, let’s define what mortgage, interest, and rate are. It is important to note that the brief explanation herein is only for quick comprehension. These terms go into much more in-depth details in economic, real estate and finance literature. The aim of this short piece is to give the reader a very short, clear, and precise understanding.  Investopedia describes mortgage as follow “A mortgage is a debt instrument, secured by the collateral of specified real estate property that the borrower is obliged to pay back with a pre-determined set of payments.”

Simply put a mortgage is just a “dead pledge”. The word “mort” is derived from origin of Latin, later Old French meaning “dead” and the word “gage” meaning “pledge”...

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“The New Rule On The Block: The Trinity Of Good Debt & Why Borrowing Can Be Smart – Part 2”

In the last article of this two-part series, in Part 1, I discussed a few points about why it is essential for borrowers to understand the dynamic of smart debt, and that all debts are not created equal. Many pundits believe that by giving up equity with the asset debt may be expensive – not entirely true in all cases. The emphasis in this article will be about the trinity of good debt, and why borrowing can be smart.

#1. Thy Shall Love Tax – Tax Burden Is Greatly Reduce When Paying Interest On Debt

One of the most interesting benefit of debt for business owners is the ability to reduce taxable profit. Unfortunately, many small business owners are not aware of such benefit...

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