Make Money On Your Mortgage

For most people, buying a home means seriously depleting your savings. But now there's a way to create a savings from the downpayment. Some mortgage lenders are courting new business with loans that let you sock away most of your downpayment in a fixed annuity, where it earns tax-deferred interest. The advantage: You'll be hedging against falling real estate values and accumulating savings to lower the total cost of your loan by 15% to 20%. "The downpayment is earning interest for you instead of sitting idly in the house," says Van Carter, president of Financial Integration, a Cleveland-based marketer of financial products and creator of the new loan (800 292-6688).

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