Why Mortgages DON'T Suck

Mortgages are often presented as scary and awful things. However, this should not be the case. Overall, mortgages have several benefits, such as tax benefits and affordability. Moreover, these benefits make one point clear: mortgages don’t suck. 

Many individuals use a mortgage to purchase their home, which is an incredible opportunity. Without mortgage companies, individuals would have to pay the full amount of their home in cash and few individuals would be able to own a home. Additionally, several loans allow one to put little money down, making the home buying process even more affordable. 

Many mortgage companies also offer their clients affordable interest rates. These rates commonly help individuals pay off their home loan in a sustainable manner.  Individuals can also decide to offer their home as collateral when receiving a mortgage, increasing the lender’s security and potentially decreasing the borrowers interest rates. 

Mortgages also don’t suck because they can improve one’s credit rating. For example, if an individual has a loan from a mortgage company and is in good standing, their credit score will improve. This phenomenon also has the potential to aid individuals in the future when they are offered interest on other credit products, such as car loans. 

Many individuals love mortgages because they are simple when handled by a professional company. For example, an individual can meet with one of their local mortgage companies in order to better understand the types of mortgage loans that exist, simplifying the application process. One can also work with a company in order to gain pre-approval, which helps one understand what they qualify for before they agree to a loan. 

Mortgages also don’t suck because they can help individuals receive tax benefits. For example, when one has a mortgage, their interest can be tax deductible. Other individuals with other loan costs, such as private mortgage insurance, may also receive tax deductions. 

Mortgages can also be a great investment. For example, if an individual buys a home and it rises in value over time, they will end up making money. Furthermore, many individuals avoid mortgages because they are worried that their home will fall in value. Although this concern seems valid, the fluctuations of the real estate market will occur whether one has a mortgage or not. For this reason, it is generally recommend that individuals get mortgages because their home’s value will be unaffected by this decision.

Many people misunderstand or overestimate the downsides of mortgages. However, individuals who research the benefits of mortgages or speak with mortgage companies understand that this type of loan has many options and benefits. 

Mackenzie Martin is a finance writer. Mackenzie writes for Fusion 360, an advertising agency in Utah. Find her on Google +. 

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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