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 actually are considered as affordable means of borrowing money. The thing is, credit card companies usually offer teaser rates, but this is just 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. You can actually pay off your credit cards first. When you have finished paying your other debts which have higher interest rates than your mortgage, you could then finish your mortgage loan.
Tax-Deductible Mortgage Interest Rates
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. The higher the tax bracket, the higher the deduction could possibly become. You even can potentially get a small deduction on your state tax obligations.
Maintain Financial Liquidity
If you get older, financial liquidity becomes more important. There’s a good chance that you and your partner will encounter a medical condition which may require an expensive treatment. You may also want to help a family member to buy their own home or you do your 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. Investing your money rather than paying off the mortgage early, you will be able to tap to your investments on simply short notice. Though you have never paid the house in full, you actually will be headed in the right direction.
The value of opportunities can be hard to define, but this is actually something that’s 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.
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.