Three Reasons to have a Mortgage

There are three reasons to have a mortgage.

There are three reasons to have a mortgage and probably a hundred reasons not to have one.  The first reason is rather simple; you do not have enough money.  The second is you do have the money and could pay cash but because of the current tax treatment of the interest on mortgage loans being deductible, you feel you are better off to take the deduction and keep your money invested in other areas.  The third reason to carry a mortgage is the opportunity that exists in the spread.  The spread is the difference between what you must pay someone to use his or her money and what you can earn on your money.  As we go through this discussion, I understand that you may have a good reason for paying your mortgage off. (any reason is a good reason)  If you are concerned about your current tax liability and maximizing your opportunities then this discussion will be very enlightening.  (Note:  there are individuals who care nothing about the tax benefits found in carrying a mortgage.  This discussion is geared for those who would like to consider options available to reduce their taxes as well as maintain the use of their money.)

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