Three Bad Reasons For Needing A Mortgage Lender

Three Bad Reasons For Needing a​ Mortgage Lender
Everyone tells you​ you're going places,​ and of​ course,​ you​ believe them .​
You're 26 .​
You're a​ supervisor at​ a​ multi-national marketing company .​
You get a​ six-digit pay monthly .​
What's more,​ it​ looks like you're headed for greater and bigger things in​ the​ company hierarchy .​
Do all these mean you​ should get a​ house?
Mortgage lenders would be the​ first to​ tell you​ owning a​ house is​ good,​ and it​ is​ - in​ principle .​
In fact,​ owning a​ house is​ a​ great way to​ build wealth over time .​
What mortgage lenders don't tell you,​ however,​ is​ that this does not mean everyone should be a​ homeowner .​
Homeownership entails a​ lot,​ not just monthly payments .​
You'd have to​ be dedicated to​ home improvements,​ for example,​ and you'd have to​ faithfully discharge your debts on​ time to​ your mortgage lender .​
So,​ if​ any of​ the​ following is​ your reason for wanting to​ buy a​ home,​ do not contact your mortgage lender just yet .​
Sit down,​ lean back,​ and read on​ .​
1 .​
a​ house is​ a​ solid investment .​
Yes,​ a​ house is​ a​ great way to​ build wealth over time; and yes,​ you​ put your money to​ good use when you​ buy a​ house .​
However,​ if​ it's only good investment you're after,​ there are better ways of​ doubling - even tripling - your money's worth .​
Stocks,​ for example,​ have an​ average appreciation that exceeds the​ inflation rate by at​ least seven percentage points .​
Then,​ too,​ as​ mortgage lenders know,​ the​ value of​ homes could seesaw along the​ dollar scale .​
For example,​ real estate value nosedived in​ the​ 1990s .​
It took ten years for Los Angeles homes to​ regain their valuation .​
If you​ just bought a​ home and this happened,​ you​ could end up owing a​ bigger mortgage than your home could be sold for .​
2 .​
Paying rent is​ akin to​ throwing money away .​
Is it? Rent is​ the​ money you​ pay for a​ place to​ stay .​
It's way cheaper than monthly house payments .​
In some cities,​ in​ fact,​ rent is​ so cheap there seems to​ be no point in​ owning a​ house .​
If not wanting to​ pay rent is​ your only reason for buying a​ house,​ you've no business calling your mortgage lender .​
Many people stretch their finances too tautly to​ buy houses .​
They end up getting loans with exotic terms from predatory mortgage lenders .​
Then,​ as​ the​ real estate market takes a​ heavy beating,​ what had once seemed like reasonable payments become onerous .​
Finances are shot in​ the​ foot,​ and you​ end up not just delinquent with the​ payments to​ your mortgage lender,​ but also faced with the​ possibility of​ losing your home .​
It's true renters are confronted by the​ rising cost of​ rental and belligerent landlords .​
Homeowners are not spared these problems,​ however .​
They have rising taxes,​ maintenance costs,​ and difficult neighbors.
3 .​
I​ need a​ tax deduction .​
This is​ the​ silliest reason among all reasons you​ could come up with for needing a​ mortgage lender .​
True,​ the​ tax break is​ nice,​ and you​ also need somewhere to​ live .​
But crunch the​ figures carefully before deciding you​ need a​ mortgage just to​ avail of​ write-offs .​
Here's the​ real deal: your write-off is​ directly proportionate to​ your tax bracket .​
If you're in​ the​ top federal tax bracket,​ every dollar you​ pay in​ mortgage interest only saves you​ 35 cents in​ taxes .​
Clearly,​ getting a​ house from a​ mortgage lender just to​ get a​ tax break is​ akin to​ giving someone a​ dollar in​ exchange for 35 cents or​ even less - if​ you​ belong to​ the​ 25% tax brackets or​ lower!
Homeownership is​ a​ good way to​ grow money and roots at​ the​ same time .​
Just because almost everyone you​ know wants to​ be a​ homeowner doesn't mean you​ should be one,​ too.

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