In paying mortgages, a lot of people tend to think that it’s best that this needs to be done quickly, which however is not entirely true. The thing about it is that there are certain advantages when carrying a mortgage on your home as long as possible. Below are some of the benefits that can be obtained when you have a mortgage.
Mortgages are in fact considered as affordable means in borrowing money. When you go for credit card companies, they usually just offer teaser rates that’s only good for the first year or so. The mortgage interest rates are actually much lower and if you are locked with a low interest rate, you could actually put money to your other debts than having to hurry in paying off the house. 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.
Interest Rates of Mortgages are Tax-Deductible
If you are going to file for 1040 and itemizing your deductions, you will be able to deduct the interest that’s paid on your mortgage. If you have a high tax bracket, the higher its deduction may become. You even can potentially get a small deduction on your state tax obligations.
Maintain 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 reason may be, you will be needing high financial liquidity. Though it is possible for you to tap to your home equity, this can actually be a problem. When investing your money than paying off your mortgage early, you can tap to your investments in just a short notice. Though you still have not paid the house in full, there’s a good chance that you are headed in the right direction.
Opportunity values are difficult to determine, but it is actually real. If in case there’s a once in a lifetime business opportunity and all are also well paid, you could take advantage of the mortgage loan. This will surely put a smile on your face after seeing the help that comes with it.
A fact about lenders is that it can offer various mortgages and that it is also possible for you in finding a particular mortgage deal that’s suitable on your circumstance and in making it an affordable option.