Adjustable vs. Fixed-Rate Mortgage: Which Saves You More?

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Stop Trading Your Time for Money with Eric Martel

66 episodes

2 days ago

Eric Martel purchased his first apartment building at just 18 years of age while still at university. After graduation, in his position as an actuary, he was dismayed to see hundreds of company pension plans being rolled over into 401(k)s shifting the retirement risk to employees. This made him reconsider traditional beliefs about saving for retirement. After the Dotcom crash of 2001 Eric started looking for ways to earn passive income and founded MartelTurnkey with his family. Eric now shares what he has learned, so you too, can stop trading your time for money.

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Adjustable vs. Fixed-Rate Mortgage: Which Saves You More? | Eric Martel's In-Depth Analysis

Stop Trading Your Time for Money with Eric Martel

9 minutes 46 seconds

1 year ago

Adjustable vs. Fixed-Rate Mortgage: Which Saves You More? | Eric Martel's In-Depth Analysis

🏠💰 In this comprehensive video, Eric Martel, a seasoned real estate investor and entrepreneur, takes you on an enlightening journey through the complex world of mortgages. With a rich background in flipping over 1,000 SF rental properties and a deep passion for real estate investment, Eric brings his unique insights and experiences to the table. 🔍 Today's focus is a detailed comparison between the classic 30-year Fixed-Rate Mortgage (FRM) and the often misunderstood Adjustable-Rate Mortgage (ARM). Which one is truly more cost-effective in the long run? Can an ARM actually save you thousands? Eric dives deep into these questions, offering clear, analytical insights. 📘 Drawing on the groundbreaking research of Yale economist James Choi, published in the National Bureau of Economic Research, we delve into how popular financial advice stacks up against traditional economic theories. Eric explores the nuances of behavioral economics and what it reveals about our financial decisions, particularly in choosing between FRMs and ARMs. 💹 Utilizing various interest rate scenarios, including a comprehensive Monte Carlo simulation, Eric breaks down the real costs of both mortgage types over 30 years. This analysis challenges conventional wisdom, offering surprising findings on the often-overlooked benefits of ARMs, especially in fluctuating economic climates. 🔢 But it's not all numbers and data. Eric also delves into the psychological factors at play, discussing how the perceived security of FRMs compares with the potential payment shocks of ARMs. This video isn't just about what the data says; it's about aligning your mortgage choice with your financial goals and comfort level. 👨‍🏫 Whether you're a seasoned investor or a first-time homebuyer, this video is packed with valuable insights and expert analysis. If you're seeking clarity in the often confusing world of mortgages, this video is a must-watch. 👍 Like, share, and subscribe for more expert financial insights from Eric Martel. And don't forget to comment with your preference between ARMs and FRMs and why. Stay tuned for our next video, where we tackle another hot financial topic! #MortgagesExplained #RealEstateInvesting #EricMartel #FinancialInsights #ARMvsFRM #HomeBuyingTips #RealEstateFinance #EconomicAnalysis #PersonalFinance #investmentstrategy