When people talk about mortgage, they think of nothing but monthly payments that can stretch up to years and even decades on end. They see it as nothing more than being short of a liability, because it becomes that when something happens rendering a person unable to pay up the remaining fees.
The mortgage’s absurdly long terms compounds that fear. Ten years is already to big a time for continuous monthly payments. Especially with the crisis these days, each day a payment is prolonged, the greater the danger that a person might lose his job and thus his house as well when he is unable to pay back the loans he has incurred.
They say the house is an asset. True enough, it fits the description of an asset only because the value of a house and real estate grows over time. However, you don’t get to earn any money at all from that investment with that arrangement. Since buying a house is an investment, you should be able to enjoy monthly or periodic returns for the money you put into that house. However, with a financial institution’s mortgages, you do not enjoy do that.
That’s where trust deeds com in. These are essentially investment vehicles. Through these trust deeds, you have a chance of earning back the money that you put in for your house. How do you do that? Here’s how.
The first step that you can do in order to start earning from your mortgage is to sell it to any trust deed company. The company will then pay the institution in your behalf, and issuing you a loan for a specific amount of lump cash. In this context, trust deeds are merely privately owned mortgages which issue loans that are guaranteed by the equity of your own home.
So which part of this do you earn? It’s by investing that money back to the trust deed company. That way, you are ready to earn back the money you have invested in your house. The lump cash that you have been given as a loan can be used as an investment, since there is no decree or provision in your contract that prohibits you from doing that. That way, you can use the monthly or quarterly payments you earn to pay off your loan. It can take some time, but once the loan is fully paid, you can then start earning back your investment.