So if you purchased your home for $150,000 in 10 years at just 5% annual appreciation, your home will be valued at $244,000. Or keep paying that 8% mortgage and earning the 17% on your investments.Is this guaranteed? The difference between the rate of return (11.2%) you are earning and the interest (6.4%) you are paying is called the “float” (4.8%). That $124,000 you invested 10 years ago at 17% is now about $580,000. Also, remember that the interest you are paying on your home mortgage and home equity mortgage is partially tax deductible. Time is always on your side when investing.One aspect we have not looked at is taxation. All in only 10 years. The adjusted rate of return is now at 11.2%. Invest Your Home in the Stock Market A lower interest rate can free up some of your monthly mortgage payment for investing. This effectively reduces your mortgage rate approximately 20%. How can you invest your home?You may want to look into [...] You can easily pay off your remaining mortgage amount of $180,000 and still have a nice nest-egg to retire on. Are you paying a mortgage around 8%? Or look into an interest only mortgage. (Author’s Note:  Although the stock market returns illustrated in this article are an obvious example of Greenspan’s “irrational exuberance” of 1997-2000, the concept is still valid.
simi valley homes for sale