Benefits of Maintaining a Mortgage
Many people are anxious to pay off their mortgage, hoping to feel relief from not making the monthly payment.
But in reality, what you may not know is that there are several benefits to having a mortgage. At Coastal Financial Advisors, Inc., while we don’t sell mortgages, but instead we help our clients make the best decisions on investments and homeownership … counseling them on why it’s best to maintain a mortgage.
Benefits of Maintaining a Mortgage Today
Tax Deduction – depending upon on your specific tax situation, you could qualify to receive a tax deduction for mortgage interest expenses.
Preserve Retirement Savings – making extra payments to pay down a mortgage takes money away from your savings for retirement. If you are looking to pay off your mortgage, you may find yourself cash poor and house wealthy.
Avoid Reverse Mortgages – if your home is paid off and your retirement savings are less than needed, you may be forced to get a reverse mortgage in the later years of your life. The reverse mortgage is a more expensive product than other mortgage types and produces less overall wealth, reduced assets, and less income in your retirement years.
Lower Risk of Inflation – today, mortgage rates range from 2.75% to 4.00%. As inflation becomes more pronounced in the coming years, loans will become more expensive. A 4.00% mortgage will provide you a loan at a great rate, so your home and mortgage become a great inflation fighter.
To learn more about the benefits of maintaining a mortgage, contact us today.