Today, buying a house is much more affordable than it was in the 1930s. Back then, you had to pay a down payment of at least 50% and pay back the rest of the loan within 5 years.
Following are some of the major benefits of getting a mortgage loan in Salt Lake City:
If you take out a $400,000 loan for a $500,000 home with a down payment of $100,000, and the value of the home increases by 10% within the year, you’d gain a profit of 50% from your investment. Simply put, leverage makes it possible for you to gain profit off your mortgage.
While paying off your loan provides a certain level of security, you will also feel secured in having money in your bank account because you took out a mortgage for your home, instead of paying everything in cash. If you have home insurance, you are covered in case an emergency such as an earthquake happens.
On the other hand, if you get a mortgage loan, the bank shoulders a big portion of the risk to the house. Assuming you have some money put aside, you will have better chances of surviving economic problems with a mortgage.
Opportunity to Invest
Great investment opportunities do not come often. If you out a mortgage instead of buying a home in cash and a once in a lifetime investment opportunity suddenly arises, you can immediately take advantage. You may save on future expenses by not getting a mortgage, but your savings may be much less than what you can earn from your investment.
These are just a few of the many benefits you can enjoy when you apply for a mortgage loan. Consider these when deciding whether to take out a loan or buy a house in cash.