Warm greetings from all of us here at the Vermont Mortgage Company! We know we talk a lot about mortgages and their different types, but what exactly are the benefits of a mortgage? Amazingly enough, it’s more than just a way to pay for a house over a period. There are many other benefits to a mortgage that can help you, both immediately and over time. Here is a small list of how a mortgage can help you.
Naturally, one of the first and most obvious reasons is because it allows you to buy a house without having to save up hundreds of thousands of dollars in your bank account. This means homes that would be out of your reach normally are available to you! Also, this means you will have money available to you for life situations, good or bad, instead of spending it all on a home. Being prepared never hurts!
Secondly, there are many tax benefits that come with a mortgage. Your interest is deductible, which is incredibly helpful early on. Being able to save your money this way makes paying off your mortgage easier overall. It’s a marathon, not a sprint!
Third, having a mortgage can help you seem more trustworthy in the eyes of the banks. If you have a mortgage with consistent, on time payments, then you are trustworthy. Therefore, if you are ever thinking of getting a loan for a car or a business venture, the chances are higher that you will get one! Always be sure to be on time, however.
Lastly, there’s equity. As you own your home and make payments, your home will accumulate equity. If you buy a $500,000 home with a $100,000 down payment and a $400,000 loan, and the home appreciates 10 percent in one year, you have made a 50 percent profit on your investment. Obviously, this is not a common scenario, but it makes the math a little easier to breakdown. When you finally have your home paid off, you will have a very valuable asset in your possession. Maybe you can sell your home, or leave it to your family someday. After the mortgage, it is entirely up to you.
There are many other great aspects and rewards of owning your own home, if you’d like to know more give us a call. We are always here to support you. Call us802-863-2020, or visit our website.