Most people worry that debt of any kind is
bad for their financial health. The reality, though, is that some
debts aren’t bad. A
mortgage
can even be considered good
debt. That’s because you’re purchasing an
asset
that
has the potential to increase in value while it also provides
a place for you to live.
Even if you have the money to pay for a home
up front, taking a loan may prove more beneficial in the long
run. A mortgage gives you tax breaks as you build your
equity.
And by taking a loan, rather than paying all at once, you’ll
be able to use your cash to make other investments and build a
diversified
portfolio.
The tax benefits alone make borrowing worth
considering. In fact, many homebuyers view tax deductions as the
primary reason to buy rather than rent.
Dwight P. Robinson, Senior Vice President,
Corporate Relations, Freddie Mac
Most people worry that debt of any kind is
bad for their financial health. The reality, though, is that some
debts aren’t bad. A
Dwight P. Robinson, Senior Vice President,
Corporate Relations, 