Reasons Why You Need A Mortgage Today

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Mortgages have been helping so many old and young people in the state, will be showing you reasons why you need a mortgage to get that which you desire most and is good you for a house is one of the best to use mortgage to enquire.

A simple way to understand a mortgage is that it enables you to purchase a home without paying the total price upfront. Typically, mortgage lenders require borrowers to pay a 20% โ€“ 30% equity down payment to get a mortgage loan.

NOTE THIS:

The 30-year fixed-rate mortgage averaged 5.30% in the week ending July 7, down from 5.70% the week before, according to Freddie Mac. That is still significantly higher than this time last year when it was 2.90%

Rates rose sharply at the start of the year, hitting a high of 5.81% in mid-June. But since then, economic concerns have pushed them lower. The 40 basis point fall offset some of the significant rate increases of May and June.

READ: Things You Need To Know Before Applying For Mortgage

FACT:

When you pay off your mortgage, you are NOT eliminating an interest cost โ€“ only an interest payment. By locking equity in your home, you are unable to invest these dollars. This costs you money โ€“ but many people are unaware of this because they donโ€™t receive a bill for this cost.

We refer to this as โ€œopportunity cost.โ€ Your opportunity cost is what you could have earned if you had used your dollars to invest at a profit instead of paying off low-interest, tax-deductible debt.

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Education and guidance

You can receive credit and financial education from your dedicated mortgage loan officer to help you prepare to purchase a home.

. Your financial well-being is our priority

Your mortgage loan officer will help to prepare you to apply for your mortgage with financial education and personal financial guidance.

Competitive rates.

Nobody will lend you money to invest at a cheaper rate. Borrowing money against your home is properly utilizing your most valuable asset.

There is a difference between bad debt and good debt, and in many cases, mortgage debt is โ€œgood debtโ€ when managed properly. There are many ways that a savvy investor can put a tax-deductible loan for 3.5% to work!

Itโ€™s My Largest Deduction.

There are very few deductions left for the middle class anymore. By keeping my mortgage, I am preserving the only large deduction I have left. This helps shield some of my income from taxation at a reasonable cost.

Reasons Why You Need A Mortgage Today

It is only an advantage to have the deduction instead of a smaller mortgage IF you save or invest the dollars you could have used to pre-pay your mortgage. If you can invest in a side fund earning only the same low rate of return as your mortgage, the tax deduction actually makes a 30-year mortgage more efficient than a 15-year mortgage.

Gives You Financial Room to Make other Investments

Think about this for a moment! If a once-in-a-lifetime business opportunity arises overnight, would you be able to take advantage of it if your money has gone to purchase a property without a mortgage?

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Down payments as low as 3%.

Your mortgage loan officer will work with you to assess your financial situation and help you to decide a reasonable and affordable amount to put down on your new home.


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