When paying off mortgages, some people tend to think that it needs to be done as quick as possible, which is not always correct. One fact about it is that there are some advantages if you carry a mortgage on your home as long as possible. Below are some of the benefits that can be obtained when you have a mortgage.
Lower Interest Rates
Mortgages actually are considered as affordable means of 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. Mortgage rates on its interest are lower and if you are locked with low interest rates, you can put money to other debts first rather than having to pay off the house in a hurry. You can actually pay off your credit cards first. After you have finished off your other high interest debts, you could then finish off your mortgage loan.
Interest Rates of Mortgages are Tax-Deductible
If you file 1040 and aoso itemize on the 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
As you get old, your financial liquidity becomes a lot more important. There’s a good chance that you and your partner will get a medical condition that may actually need expensive treatments. You also may want to help your family member in buying their own home or perhaps have an expensive hobby. Whatever the case is, you are going to need high financial liquidity. Though it is possible in tapping to your home equity, it can in fact cause a problem. 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 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. 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 can actually put a smile on your face after the help that you have received from 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.