Loan Strategy - How to Manage

[Cameron Daste]

Not going to lie, the amount of interest paid over the life of a typical mortgage is insane to me. I'm guessing I can't be the only one...

How do people find comfort in knowing the interest payments, over time, could even exceed the original value of the loan? Do folks typically go for a larger down payment, when possible, to reduce the interest? Pay in more frequent installments? Refinance?

What are the benefits to keeping your mortgage payments the minimum? I'm guessing you can leverage your other earnings for something else? I feel like anecdotally, I've heard people leveraging debt (from a mortgage or something else?) to make additional investments?

Any resources to learn about the above in detail? Or words of advice?

Thank you!

[Brandon Croucier]

Opportunity cost is the name of the game, in a fiat system where we create money out of thin air; Money now is more valuable than money in 30 years. As a result assets will continue to appreciate.

Using someone else's money allows you to leverage and buy assets NOW that will continuously go up in value, as well as increase a cash on cash return for yourself over time. Yes you could buy 1 house cash for $500,000, or you could buy $2,500,000 in real estate with 20% down.

When the market appreciates 20%, one would yield you $100,000 while the other would yield you $500,000.

This also doesn't calculate the increased cash on cash return you will get with increased rents across all of your properties rather than 1. 

Good debt is debt that makes you more money than you would without it.