This being my first blog on this site, I thought I would comment on an article I read on MSN.com reagrding the 3 worst money moves you can make. There are many thoughts on what to do and how to do it to either pay off your home early, when to retire and how to get the most out of your finances. Here are mine:

They comment that many lenders like to have people refinance and pull out money in order to pay off debt. Now this isn't always a bad thing. You really need to evaluate and analize your total debt rate for all your debts, not only your mortgage. I have seen too many people have large credit card debts with rates anywhere from 12-22% and a mortgage with 6%. After I have done a full assessment of their debt structure, it made total sence to refinance and pay off debt to save money. Now I know you are now paying this debt off over a much longer time but it makes sence to under these circumstances.  

This article also addressed 401 k's or retirement accounts. I am opposed to taking money out to invest or borrowing against it. It is there for a reason and that is to retire. If you have a problem with cash flow, then reduce your contributions but don't take the money out. Always pay yourself first and by doing that, you will actually have money when you retire. And with the amount of money we get from social security at retirement, we will need every bit of it.

The last part of the article addresses stretching to buy a home. The number one thing I look at is "CAN YOU AFFORD THE PAYMENTS?" It is simple! If the answer is no, then don't get that loan. I know most loan officers don't address the ramifications of taxes with buyers and they need to. If you are a first time buyer and don't have the deductions for interest, then it is easy to figure out how to adjust your paychecks to compensate for the additional tax deduction you will get. Now adjust your deductions from Federal deductions only and put that towards your house payment.

There are many different ways to look at things and if you know someone who needs excellent advice then have them call me or go to my website: LoansAreFree.com.