5 Reasons to Take Out a Mortgage Even if You Don’t Need One

The media might make it sound like an impossible mission to take out a mortgage loan today and many individuals, real estate agents and real estate investors have become fearful of taking on any form of debt, much less a big, long home loan from the nation’s now notorious banks.

However, there are at least 5 good reasons to take out a mortgage right now, even if you don’t need one…

1. Preserving Capital

Most people find it a lot harder to save than to pay back a loan. So by borrowing instead of using your precious cash you can keep ahold of your treasured, hard worked for greenbacks and still get ahead.

2. Interest Rates

Mortgage interest rates are ridiculously low today. Most Americans probably thought they’d never see long term mortgage rates every go so low and the reality is that the vast majority have little hope of ever seeing interest rates this low again in their lifetimes. So if you are planning to do any borrowing in the next few years, have higher rate debt to consolidate or pay off or need some extra tax deductions taking out a mortgage now might be smart. Consider that just a couple point rise could add tens if not hundreds of thousands to the cost of buying homes for those that wait too long.

3. Leverage

Some may associate leverage with being a bad thing given the recent crises. However, there is a big difference between irresponsibly over-leveraging yourself and smart leverage that simply allows you to accomplish more sooner and enjoy the benefits of compound returns over time. Do the math and think about the difference buying an extra home or three right now can deliver compared to waiting. If there was ever a time to leverage this is it.

4. Force Bigger Thinking

Taking out a monster home loan means you’ve got to pay it back and that might require thinking a lot bigger than you have been. You might be very pleasantly surprised at just how much you can accomplish when you put your mind to it.

5. Forcing Momentum

Too many individuals are staying snugly wrapped in their comfort zones because they don’t have any debt and don’t have to take immediate action. However, this is also a trap that will have big consequences later on. Having a mortgage and payments due makes you move.