When talking about paying off mortgages, most people think that it is best that this needs to be done as fast as possible, which is however not always correct. The fact is, there are certain advantages present when you carry a mortgage long on your home as possible. Through the article below, you will learn some benefits which can be obtained from having a mortgage.
Interest Rates are Low
Mortgages are in fact considered as affordable means in borrowing money. The thing is, the credit card companies tend to offer some teaser rates, but this is usually only good for the first year. Mortgage interest rates are in fact low and when you are ever locked with 4.2%, you could actually put money for other debts rather than having to pay off the house fast. In this way, you can pay off your credit cards first. Once that you have finished paying other debts with higher interest rates, you can then finish your mortgage loan.
Mortgage Interest Rates are Tax-Deductible
When you file 1040 and consider itemizing your deductions, you will be able to deduct interest paid for your mortgage. If you have a high tax bracket, the higher its deduction may become. You also could get a small deduction from the state tax obligation.
Maintain a Financial Liquidity
When you get older, having financial liquidity is very important. You and your partner may get a medical condition which may require treatments that are expensive. You probably want to help a family member for buying their own home or you have an expensive hobby. Whatever the case is, you are going to need high financial liquidity. Though it is really possible to tap on your home equity, this may actually cause a problem for you. When investing your money than paying off your mortgage early, you can tap to your investments in just a short notice. Though you have never paid the house in full, you actually will be headed in the right direction.
Opportunity in Investments
The value of opportunities can be hard to define, but this is actually something that’s real. When there’s a once in a lifetime business opportunity that comes and is also well paid, you should consider taking advantage of the mortgage loan. This will surely put a smile on your face after seeing the help that comes with it.
Lenders tend to offer different mortgages and it is also possible for you to find a certain mortgage deal which is suitable for your circumstances and to make this an affordable option.