When we are making a choice on buying a home for ourselves and our family, the biggest question we often ask ourselves is whether we are to take out a mortgage or rent. Both of these things have their merits, however today we are going to talk about the benefits of having a mortgage.
Better credit score
If you are wondering how to increase my credit score for better prospects for loans, you can’t get any better than taking out a mortgage and paying it off every single month. Having a mortgage as a standing order on your account means that your credit history is always updating with bills being paid off and it will look incredibly good for you if you ever come to buy the car you want or you want to take out a loan for something.
When you are a first-time buyer and you are paying off your mortgage each month, it might feel as if your money is disappearing into a bottomless hole which you will never see again. However, what is actually happening is that your money is going towards your stake in ownership of the home and this is called equity. Equity is great because you can use this in the future towards a new home or you can use it to pay off other things when you need to. It is a life, one for many and a useful thing to have.
A Great Asset
When you have been paying off the mortgage on your home for decades and you finally pay off the last portion, you now own this house fully and you never have to pay anyone for it again. The main thing which is great about this is that you can pass this house down to your children when they need a house and it will be a way that they can live in a house without having to pay for a mortgage each month. It can also be sold for a hefty profit which you will be able to put towards a lot of different things.
Believe it or not, owning a house can actually increase your chances of getting a good job. When you have a mortgage to pay off, this will come up when you apply for a job or a loan and they will see that you are financially stable and clever enough to pay off your loan each and every month. Having a mortgage is a sign of a stable and adult home and this can work in your favor massively when you are looking for prospects elsewhere in your life.
Renting a flat can be great for a while, but you never truly own the space and you can’t just go around knocking down walls and hanging up artwork. When you buy a house of your own you can make it your own. There are no limits to what you can do within your four walls so you can really make a home which speaks to you and says a lot about who you are as a person.