A mortgage is a type of loan specially designed for buying a home. It can help you buy your dream home without having savings on your account. This method of financing brings so many benefits for you. Buyers are pretty flexible with disturbing the payments over the desired number of years.
Besides, we review the top advantages of reaching out for a mortgage.
Buy your dream home easily
When you don’t have enough savings on your account, you can always rely on a mortgage to buy a home. The minimum for a downpayment is only 3.5% of the price, but some homeowners prefer to choose between 10% and 20%. When you obtain a mortgage to purchase a home, your personal funds are available for other costs such as home improvement or even investment.
Improves your credit score
The on-time payments will have a positive impact on the credit report. This gives you credibility in the eyes of potential lenders. A good credit score will also help you obtain lower interest rates on other types of loans that you plan to get.
Mortgage tax deduction
Homeowners that have a mortgage are eligible for an income tax deduction. Keep in mind that this is one of the options for tax deductions provided by the IRS.
Out of all the financing options available, the mortgage is one of the cheapest ways to borrow money. Credit card companies offer high rates after the first year, so you can allocate your money to paying off other debts.
It is clear that the mortgage comes with a range of advantages. But, are there any downsides that might turn you away? Read more about this in the next post!