Advantages Of Carrying A Mortgage

The Advantages When a Seller Carries a Mortgage

If one were asked to put 10% of his monthly net earnings into the bank. It would be very difficult for an individual to continue doing so year after year.

The advantage of Carrying A Mortgage: That is where carrying mortgage makes sense. It put the borrower into a forced savings plan. The monthly payment you make is split between principal and interest. The principal is the borrower’s contribution into his kitty.

One could say that I am losing money on the interest portion of the home mortgage. Well not necessarily. You get to write off the interest payment against your income that reduces your tax liability.

You are not warren buffet so you may not have much understanding of the stock market so you may not know which stock to bet on but you have a fair understanding when you buy a home as to what the market value would be in few years to come looking at the neighbourhood and talking to friends. So with mortgage as your investment, you have a much clear idea as to how your investment would look like in years to come and how much would it pay you.

The money you spend as a renter is essentially coming back to you in the form of house payments.

Bank CD do not yield as much interest or return as much a home gives in return because of annual appreciation in home value. In the event of any contingency, your home is the best bet to borrow money from.

So there are many advantages of having a mortgage.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154