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Here are 5 great reasons to carry a big,long mortgage and never pay if off
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Author: duvan duong Article source: http://www.articlealley.com/. Used with author's permission.
"Here are 5 great reasons to carry a big,
long mortgage and never pay if off."
- Ric Edelman
Author of the acclaimed National Best-Seller,
The Truth About Money, 1997 "Book of the Year"
Reason#1
Mortgages don't lower home values.
Your house will grow in value (or not) whether or not you have a mortgage. In fact, most people discover that, over time, their mortgage balance falls while their home value rises - creating substantial wealth they never expected.
Reason#2:
Your mortgage is the cheapest money you'll ever buy.
Most people need to borrow money during their lives, so why pay 18% to credit cards when you can borrow at rates of 7% or even less?
Reason#3
Your mortgage is the best way you can lower your taxes.
Interest you pay on personal loans, auto loans and credit cards is not tax-deductible, but for most of us, interest you pay on mortgage loans is fully tax-deductible, making the cheapest loan you'll ever get, even cheaper. Imagine borrowing money for a net cost of just 5%.1 You can do it with a mortgage loan!
Reason#4
Get the cash out of the house - while you still can.
The main reason people turn to borrowing is because they have little or no income. But if you ever suffer a job loss, major medical or other financial crisis, you could find yourself unable to get a home loan. That's because lenders don't like to lend money if you are already in financial difficulty. That's why you should get a big mortgage now, before you need it - and while you still can.
Reason#5:
Your mortgage becomes even cheaper over time.
Depending on the loan you choose, your payment never rises - but your income likely will. That means today's mortgage payment becomes increasingly easy to pay over time!
The rules of money have changed. And nowhere is that more true than with mortgages.
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