Since homes tend to consume the largest percentage of our income and the taxes related to real estate ownership reduce our wealth, it makes a lot of sense to spend some time focusing on improving those outcomes.

• Rates on mortgages – are a simple way to manage cash flow. It is obvious to refinance higher rate mortgages into lower rates, but also, looking closely at the product is important.  Many people focus on shorter term mortgages, in an effort to avoid interest expense. A noble reason but one that overlooks cash flow, doubling the payment on your mortgage to save interest will save money but what is the opportunity cost on that cash flow? Could you have earned more or created wealth or accomplished another important financial goal with the same cash flow. And since mortgage interest is usually tax deductible, it is critical to evaluate each cash flow decision.
• Right product at the right life stage – taking a 15 yr. fixed a few years before retirement may not make sense, especially if you end up moving and selling your home. Taking a 30 yr. fixed, when you may move in 5 years also may not be the right financial decision. Each time you get a mortgage a careful evaluation of your financial plan is in order. Interest Only and Reve
• Home Equity isannon-taxable asset– using home equity to accomplish any number of financial goals can be smart. Cash out refinancing allows access to generally tax-free money for other purposes, ideally to produce more assets and improve income or build wealth in other areas. Selling a home often produces a large tax-free lump sum and this happens only a few times in life. This pivot point can be used to make up for deficiencies in your financial plan, such as education, retirement, health care or legacy planning.
• Interest only and Reverse mortgages– are simply cash flow tools to be integrated into financial planning in retirement, they allow management of cash flow and home equity to create sustainable plans and improve lifestyles for millions of homeowners.