1. It’s probably the cheapest way to borrow – The interest incurred is tax-deductible and the rate should be low as the loan is secured by your home.
2. It creates leverage – A mortgage can be compared to opening a margin account at a brokerage because it can increase your assets with borrowed money. The difference is your mortgage lender can’t demand it’s money back if your home price drops.
3. It’s a back-up source of funds for emergencies – If you have some equity built up, consider setting up a home-equity line of credit. Large medical bills or repairs can be funded by borrowing against the equity you have built up.
4. It makes inflation your friend – Like other hard assets, real estate tends to hold its value when inflation picks up. With a mortgage, you get double the protection. The payments on a fixed rate mortgage stay constant even with rising inflation, which means in the future you are paying with less valuable dollars while the value of your home could be increasing.