The Truth About Money

5 great reasons to carry a big, long mortgage

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% on credit cards when you can borrow at much lower rates.

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 3%! 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!