Mortgages Can Be Good

I don’t know why, but in recent times, a strange stereotype has begun to develop, implying that mortgages are a bad thing to have. Along with this stereotype, some strange person decided to publicize the fact that banks are conning customers in to taking out mortgages they can’t afford, and then lurking in the shadows until they eventually miss a payment. To be honest, this is absolutely ridiculous - and in actual fact, having a mortgage can be one of the most useful financial instruments in the mainstream world. I’ll help you out by explaining why.

Firstly, a mortgage saves you from having to come up with a few hundred thousand dollars at the time when you purchase a house. Imagine the chaos and havoc that would ensue if you have to save $400,000 in order to buy a house, simply because there were no mortgage facilities available. Not only would this take much longer than necessary - but it would also be a complete waste of cash. See, the interest on a mortgage is what? 4 or 5 % ? Don’t you think you could do something more productive with $400,000 if you had it in cash

? Have a think about that question - it’s an interesting one!