There are few concepts in finance as misunderstood as a house mortgage. When asked the question, “is it smart to buy a house?” people tend to think of it as some kind of trap. They imagine being locked into a lifelong payment plan they can’t ever escape or losing out on interest rates to some unscrupulous banker.

Nothing could be further from the truth. Owning your own home is the dream of thousands of people across the country, plain and simple. And with a mortgage in place, you can not only achieve that dream within your lifetime but also save money and make good on your investment.

In today’s article, we’ll be showing off four of the best reasons to invest in a home mortgage. Ready to save some money? Good – because we’re ready to show you how.

Mortgages Are Inexpensive

In a world where people throw credit cards and low-interest bank loans at you in the street, mortgages are still the cheapest money going.

This comes down to the question of the repayment period. Loans are short-term, and the banks or lenders who give them to you have to be sure you’ll actually pay them back. So they set the interest rates much higher, typically, to put the pressure on you to pay back that $1000 loan before interest turns it into $2750.

Not so with a mortgage. When you offer your house as collateral, you’re letting the bank take that away if you default on the loan. This makes it one of the biggest benefits of having a mortgage, to both you and them. With less risk (to the bank) there’s no need for sky-high interest rates.

Check out up-to-the-minute mortgage rates here!

A Mortgage Won’t Affect The Value Of Your Home

A central factor in the purchase of any house is its value and whether that value is set to rise or fall. Nobody wants to invest in a depreciating asset, especially when it costs as much as a whole house.

Another great mortgage benefit is that they don’t affect any changes in your home’s value. This is influenced by external factors, meaning that outright buying your home is actually more risky in terms of your equity.

Mortgage Payments Tend To Get Better With Time

A long-term mortgage can be intimidating when you first come into it. Mortgages may seem like a lot, especially early on, but the beauty is that, especially with a fixed term plan, they almost always become easier.

This is because incomes rise, typically. Even in a more economically strapped society, like we currently live in, people who work consistently tend to come into more money over time. Monthly payments stay the same from year to year, but even with minor increases in payments, over 30 years they do become more manageable.

Mortgage Interest Is Tax-Deductible And Tax-Favorable

When you pay interest on a loan to buy a house or to build or improve your home, that money is tax-deductible, provided you itemize your deductions. Deductions are taken at your top tax bracket, meaning that, if you’re in the 35% tax bracket, your mortgage payment interest saves 35 cents per dollar. This applies to state income taxes too.

Is It Smart To Buy A House? With A Mortgage, Yes!

When it comes to making an investment as big as buying a house, most of us need a little help. There’s nothing wrong with a large mortgage, and letting yourself be scared out of it could actually cost you money in the long run.

So – is it smart to buy a house? Hopefully, today’s article has shed a little light on the advantages of using a mortgage to do exactly that. For more on this and the home realty industry, check out more blogs from Bonnie Roberts Realty, today!