The Priciest Item

April 2, 2009 House & Home, Mortgage No Comments

A house will probably be the priciest item you will ever buy.  The wonderful thing is that you can own it without paying for all of it yourself.

How is this possible? Just ask some homeowners.  Unless they’re exceptionally wealthy, they’ve probably bought their own house, as you will, with a small amount of down payment and a loan—or mortgage—for the rest.  This procedure, using a small amount of your money and a large amount of someone else’s to get something you want, is railed leveraging.