In a new study of 10,000 American millionaires, author Chris Hogan and researchers find that one of the most commonly used mortgage loan products may be hampering wealth-building.
According to Freddie Mac, 90 percent of U.S. homebuyers finance their home's purchase with a 30-year mortgage. Of this, Hogan says, "People throw away tens — even hundreds — of thousands of dollars on these loans without ever stopping to do the math." His research finds that the average millionaire pays of their house in 11 years, and 67 percent have paid off their mortgage for the home they're living in now, Business Insider reports.
"If you want to know why most people don't become millionaires, look no further than the 30-year mortgage," wrote Chris Hogan in his book,"Everyday Millionaires: How Ordinary People Built Extraordinary Wealth — and How You Can Too." In partnership with the Dave Ramsey research team, he studied 10,000 American millionaires (defined as those with a net worth of at least $1 million) for seven months.
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