5 Obvious Benefits of Having a Mortgage
July 20, 2020
For the vast majority of people, it’s impossible to buy a home without a mortgage. Fortunately, there are hundreds of lenders offering a whole range of different types of mortgages. Compare Mortgages. Get Free Advice. Whether you are buying your first home, remortgaging or moving up the property ladder, there should be a home loan suitable for you.
1. Mortgage Makes Homeownership Affordable.
Buying a home is likely to be the biggest purchase you’ll ever make and a mortgage will be your largest debt. Because you can spread the repayments on your home loan over so many years, the amount you’ll pay back every month is more manageable and affordable!
2. Mortgage helps to build a real estate asset rather than paying rent to fund another person’s asset.
Owning a home generally also means that there is more room to live as opposed to renting an apartment. Homes typically have yards and garage space. When buying a home a person may also have the type of pet that they prefer without worrying about restrictions, additional deposits, or rental fees.
3. Mortgage offers future investment potential.
Every month you make a mortgage payment and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. You can use your existing home equity to buy an investment property without dipping into your savings. Using the equity in your home is a smart way of building your property portfolio without feeling the pinch.
4. The equity can be used to help pay for college and weddings.
If you're a homeowner, you have a secret weapon that can help pay for college tuition. It's the equity in your home. ... If you need to come up with the money for tuition costs or wedding and you have built up more than 20% equity in your property, a home equity loan may be the best route to take.
5. The equity can be used to help pay for retirement.
A reverse mortgage gives you access to the equity that already exists in your home, turning a portion of it into an additional source of cash—tax and payment free. This financing solution allows you to enjoy your lifestyle and focus on your priorities, like paying off debt, covering everyday expenses, making renovations, and supporting your family—all while retaining ownership of your home, and making no payments until the mortgage is due. Learn more.
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