A simple definition of a mortgage is a type of loan you can use to buy or refinance a home. And no, there are no such things as long-term mortgage. There is only a short-term mortgage. I won't go into that much detail, but the main difference between a mortgage and a loan is that a mortgage can be forgiven if you aren't able to pay the mortgage back. You can think of a mortgage as a form of debt. When you buy a house, you buy that house. If you don't pay for it, you can sell it at any time and get to whatever value you put on it. We suggest visiting websites like https://www.sofi.com/home-affordability-calculator/ to get all the information you need about mortgages.

 

This new type of reverse mortgage would help retirees generate much more income - MarketWatch

In reality, many people have several different types of mortgages, including tax-free mortgages, mortgages that are also for payment to the bank and interest-free mortgages. Some borrowers choose to buy a home with a tax-free mortgage, but some prefer to buy a home with a loan from their bank that they have to pay back. A tax-free mortgage is one that is tax deductible but that also doesn't come up to its full value until after you have paid for the mortgage and the monthly rent. For instance, if you bought a house for $200,000 and it was worth $210,000 after taxes, the $55,000 you paid for it will be tax deductible, but the $210,000 you owe the bank for the mortgage will not be.

Why Do Some People Refinance?
Some people prefer to pay back their mortgage faster than they owe the bank. Others prefer to pay less money into a mortgage than they are able to pay back. There is a huge world of options to choose from. You can get tax-deductible loans, you can get a loan with a fixed interest rate, or you can use an unsecured loan that you will pay off by getting a loan from the bank. You can get a fixed interest rate or a variable interest rate. The question is what type of mortgage do you want?

Here is a good reason to refinancing your mortgage:

Pay off the mortgage faster
Another reason to refinancing your mortgage is that you have a debt. You have an interest and principal obligation to pay for the home that you are now paying for. Do you really want to pay off that debt with a mortgage? Of course not! After all, how can you afford to pay off that debt if you are only paying off the mortgage?

So why do we want to pay it off faster?

Well, one reason is because paying off the debt quicker will leave you less money to spend on stuff. For example, suppose you are in your early 30s, have a relatively large pay grade and a nice house that you would like to sell. Let's say your real estate agent, on a good day, says you have a $250,000 house that needs around $10,000 in repairs. So instead of trying to sell the house, you let it sit for a year or two. That money you spent on making repairs will help you afford to pay off your mortgage faster. So, you could refinancing for $25,000 per year. Now, instead of paying for the mortgage, you are paying for the house, not spending it on anything else. That way, if you buy something nice, you are the one paying the bill instead of your lender.

Can Mindfulness Transform Feelings?

practicing mindfulness

When you mention mindfulness, many people immediately imagine Buddhist monks, sitting in the lotus position meditating.  If you are unaware of how mindfulness can be incorporated into many aspects of life, it can seem impractical in the midst of the pressures, demands and hassles that most people encounter every day.

However, practicing mindfulness-- defined by Jon Kabat-Zinn as the process of paying attention in a particular way: on purpose, in the present moment, and nonjudgmentally-- can have a significant impact on our functioning.  It can improve your ability to focus, as well as your ability to manage intense or painful emotions. Continue reading “Can Mindfulness Transform Feelings?” »

Mindful Breathing to Reduce Stress

One of the primary reasons to practice mindfulness is to build up our ability to concentrate. Breathing is a natural and effective tool in preventing scattered or fractured thinking. Breathing is a way to connect your body to your thoughts and, when your mind becomes scattered is a way to refocus.

The following is a breathing exercise. Focus on bringing our awareness to our breathing. Learning to focus on your breath can help to anchor you in the present moment. Focusing in breathing also generally has a calming effect.

You will begin the exercise by just tuning in to the feeling of your breath coming in and out of your body. Just focus on breathing and knowing your breathing. Today’s exercise will be an exercise on counting your breath.
1. get settled in a comfortable position
2. focus attention on breath
3. inhale, filling lungs
4. exhale-count on each exhale from one to ten. For example: Inhale, Exhale, “one,” Inhale, exhale, “two” inhale, exhale “three” up to ten.
5. When you reach 10 start over at 1
6. if you lose count at any time, start over at 1

The first few times you do breathing exercises can feel awkward. Your mind may wander from your breathing or you may have judgments about your ability to stay focused. It is normal to feel that way. If you do feel awkward, just notice that feeling, and let it pass. If you get fidgety, just notice the urge to fidget and let it pass. If you lose count or find you are distracted by sounds, gently bring your mind back to your breath and begin counting at one. Trust in this moment and allow it to unfold without analyzing, judging or doubting it.

Reference:
Thich Nhat Hahn. The Miracle of Mindfulness: A Manual on Meditation.