Four Reasons to Love Your Mortgage

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.