Is Mortgage Considered as a Good Money Investment?

Navigating the waters of real estate can be kind of scary when you’re going in blindly. Buying a home has commonly been considered as a part of what it means to fulfill the American Dream. It’s one of the boxes that many want to tick off as a sign of a “long time coming job well done.” Coming fresh out of the gates without knowing anything about the terms mortgage, breakeven, Federal tax deductions may be a grave mistake. Luckily for you, there are plenty of tools like Home Lending Pal that can assist you and guide you towards making the best decisions with your home purchase.

The usual question that comes to mind when it comes to a home purchase is whether or not to take out a mortgage or if to pay for it in cash. But then the question that follows is: what even is a mortgage? Is it even worth it to take one out? Can I even get a mortgage? Suddenly things aren’t so simple and exciting anymore. Let’s break it down:

Meet Mortgage!

A mortgage is one of the most common forms of loans and is the most recommended. A financial institution such as a bank or mortgage company will give the interested homeowner a loan for them to be able to purchase a home. Payments there are done on a monthly basis with a “fixed or floating interest rate, and has a lifespan of anywhere from three to 30 years.” With this option, it makes it possible for so many more people to have access to their very own homes because they don’t have to pay for such a large sum out of pocket all at once. Sounds pretty good, right?

Making the Most of It!

Just with any other purchase, you want it to be worth it. And it would only make sense that above all things you’ve ever bought, you want your home to be a good, worthwhile home. Just being able to own a home may be enough to convince others, but here’s how a mortgage will allow you to make the absolute most out of your purchase.

  • It is possible for you to purchase a home in a continuously developing neighborhood. While your monthly mortgage payments may feel like a lot at first, as properties around your own continue to go up, you could very well be still paying for prices from 5, 6, 7 years prior.
  • Mortgage interest is tax-deductible! While you’re out there living in your nice home and paying your monthly installments on time, you could very well be making money and breaking little to no sweat. According to, “If you file a 1040 and itemize your deductions, you can deduct the interest paid on your mortgage.” 

Financial Flexibility

Taking out a mortgage means you won’t be needing to shell out a huge amount of cash in one go. Now, this may seem repetitive at this point, but it should go without saying that this means you’ll be able to spend your money in other ways. Sure your home won’t be fully paid for, but as long as you’re able to meet your monthly payments, it should be no problem. What would be a problem is if there were ever a need for money for medical treatments, family emergencies, or even just a newfound (possibly expensive) hobby, and you didn’t have anything to spare because well, at least your house is fully paid!

It sounds simplistic at times but the freedom and flexibility a mortgage may give you isn’t just a monetary investment but is an investment in yourself as well. 

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