Have you ever known someone hesitant about getting a mortgage? Most of the time when people are hesitant, it is because they are unaware of how they can benefit from a mortgage. Whether you are considering a mortgage, a new home buyer or still unsure, it is helpful to know all of the ways a mortgage can be beneficial to you. Here are four reasons:
1. Your home has value.
Yes, a mortgage is an obligation and a debt required to be paid back, but sometimes a mortgage is referred to as “good debt.” This is because it creates value for you in the long run. There is a chance that your home value will increase over time, and could be worth more than you paid for it. Each monthly payment reduces the principal of the loan, and you’re another step closer to paying off your mortgage.
2. A home loan makes home ownership affordable.
Most people don’t have enough money in the bank to pay for a home all at once. Home loans give people the opportunity to own a home and make manageable payments over time.
3. A mortgage is cheaper than renting.
Oftentimes, people believe that renting will be less expensive than paying for a mortgage. It is possible for the cost of rent to be lower than your mortgage payment, but rent is a sunk cost. When you are paying off your mortgage, you are getting closer and closer to owning a tangible asset.
4. There’s excitement in paying off your mortgage.
Paying off your mortgage can reduce stress, and can allow you to start building an equity cushion. Without monthly mortgage payments, you have the opportunity to save while enjoying your dream home!
Obtaining a mortgage gives you the opportunity to live in the home you’ve always wanted! Here at Union Home, we want to help you find the best loan option for you. To get started, contact Housing Buzz today!