334: 5 Reasons to Finance a Home Purchase
Be Wealthy & Smart
Linda P. Jones
4.8 • 883 Ratings
🗓️ 30 October 2017
⏱️ 8 minutes
🧾️ Download transcript
Summary
Learn how to think through whether or not to finance a home.
A friend called me. Should I finance the home or pay cash?
What is the fixed rate? 3.5%
1. Still very low rates.
2. It is tax deductible if you itemize. Will it still be under tax reform?
3. If rates go to 6%, will you kick yourself?
4. You can earn a dividend on a stock that yields 3.5% and earn
enough to pay it.
5. Cautious of risk? Think we could be at the peak of a bubble?
Then don't borrow 80%, maybe only borrow 60%. Put down more and borrow less. That way if prices drop you hopefully won't be under water.
Hit the subscribe button for instant notice of new podcasts!
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Be wealthy and smart episode 334. If y'all know what I mean put your hands up and declare with me |
| 0:13.8 | Yeah, I'm full of pay hey time I'm gonna live the good life |
| 0:20.8 | and you're gonna live the good life |
| 0:21.3 | and you're a glorious light Step into a world of wealth and financial freedom without budgets, boredom or bosses on be wealthy and |
| 0:30.3 | bosses on be wealthy Wealthy and Smart. And now here's your host, Linda P. Jones. |
| 0:38.0 | Welcome to Be Wealthy and Smart. I'm Linda P Jones, America's Wealth Mentor, |
| 0:41.8 | Empowering Women and Men Worldwide to Financial Freedom. |
| 0:45.4 | On today's show, we're going to talk about five reasons to finance a home purchase, and |
| 0:50.2 | you're going to learn how to think through whether or not to finance a home. |
| 0:55.0 | And I'm going to tell you a true story. |
| 0:56.3 | This is because a friend of mine called me a couple of days ago, I'll call him John, He called me up. He's a very successful businessman, sold his business, and he's looking to buy a third home, and he just wants a little kind of small residence in another city and so he said to me |
| 1:17.8 | should I finance my house? Well I was kind of surprised that he was asking that question because he's a pretty savvy guy, |
| 1:24.8 | very successful businessman. |
| 1:27.2 | And so I wanted to share with you sort of the logic and the thinking that went through and the conversation I had with him because you might be curious what I said or how to think that through for yourself. |
| 1:40.5 | So the first question I asked him is if you were to get a fixed rate mortgage |
| 1:46.2 | because that's the only kind I believe in right now since we're in an upward |
| 1:50.2 | rising interest rate trend what would the interest rate be? |
| 1:55.2 | And he said around 3.5%. |
| 1:58.0 | I said, wow, that's a great fixed rate. |
| 2:01.5 | That is a very low rate historically and you know I remember when |
| 2:06.7 | rates were a lot higher I've certainly had interest rates in the past that were |
| 2:11.3 | a lot higher than that. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Linda P. Jones, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Linda P. Jones and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.