Do you really need a mortgage?
There are only 2 ways we can think of when it comes to purchasing a home (unless you inherit it) and that’s by either buying it cash or getting a mortgage loan. Most people get a mortgage loan. But do you really need a mortgage? Well, the average home buyer believes that the only way they can really purchase the home they’ve always dreamed of owning is by getting a mortgage, and even after that, the likelihood that they may in fact purchase another home after that is even greater.
A mortgage is a good choice if you don’t have a lot or not all of the cash needed to purchase a home. Perhaps the purchase of the home you like exceeds the amount of money you have in your savings, or might even liquidate your entire lifelong savings. I mean, when you think about the average cost of a home in your area verses the amount of money you’ve got saved, you might as well get a mortgage before going broke, wouldn’t you agree?
So what’s wrong with purchasing a home with cash and worth a quarter the amount of money you have in your savings? Well. For starters, there may not be that many homes worth that amount in your area. The average person in the US that gets a 30 year mortgage has less than 50k in their savings account, and the average home price in Florida is about $285k.
Therefore I’ll ask you the question again, do you really need a mortgage? And if so, do you know what Mortgage is right for you?