We specialize in making the home purchase process a great experience. If you’ve been on the fence about taking on a big mortgage loan, we’re here to help you make the right decision.
When taking out a mortgage, it’s generally advisable to go big. Unfortunately, most people are scared of big mortgage loans, but this fear and misunderstanding often work to their detriment because they miss out on certain benefits.
If you’ve been on the fence about taking on a big mortgage loan, we’re here to help you make the right decision. Below, we’ll explore a few reasons why a big mortgage loan might be a good idea for you.
The Mortgage Has no Effect on Your House Value
There’s a common belief that taking a big mortgage loan can affect a home’s value. But the truth is that borrowing a mortgage, large or small, has zero impact on your house value. In other words, your home’s value will rise and fall in the next few years whether you take a small or large loan.
And given this fact, it means that you’re better off taking a significant and long-term mortgage because it’ll let your equity grow while your home’s value increases.
Mortgages Are Among the Cheapest Loans You Could Borrow
Believe it or not, mortgages are one of the cheapest loans you could borrow. Seriously, good luck trying to borrow a low-interest two hundred thousand loan for thirty years. If you crunch the numbers, you’ll agree with us when we say that mortgages are among the cheapest loans you could borrow.
Plus, with mortgages, the more confidence the lender has in your ability to repay the loan, the lower your interest fees. Leverage this affordability to your advantage and borrow a big loan for your home or real estate investment.
You Can Get Tax Deductions on Your Mortgage Interest
Any interest you pay on your mortgage for your home is tax-deductible. The deduction correlates to your tax bracket. For instance, if you’re in the 40% tax bracket, you get 40 cents deducted for every dollar you pay in interest fees. This means the more interest fees you pay over time, the more deductions you get on your taxes.
Paying Your Mortgage Gets Easier Down the Line
Most people who borrow a mortgage tend to grow in their careers and businesses over time. So although the monthly payments seem like a financial burden initially, things are bound to get better over time. If you borrow a long mortgage, mortgage payments will be almost insignificant by the time you’re finishing off the mortgage.
Contact Better Rate Mortgage
Are you in St. Louis, Missouri, and looking for the best mortgage deals in the region? Look no further than the Sean Zalmanoff Team. We offer low-interest rates and feature home loans for borrowers with different types of credit.