Paying Down Your Mortgage Does Not Automatically Increase Your Net Worth

Mathematics is highly-relevant to financial planning. It helps us grasp concepts such as compounding interest, amortization schedules and return on investment. But, forget all of the complex equations. Basic math is all you need to get to the key point:(Net worth) = (Total value of assets) - (Total value of debts)There are two ways to increase your net worth -- you can increase your assets, or you can decrease your debts. Either way works. Most people think that paying down...

Read More...

[Source: The Mortgage Reports Blog]