There are three emotional reasons to have a mortgage. |
There are three emotional reasons to have a mortgage and probably a hundred reasons not to have one. The first is disability; If you become disabled and need access to capital, you will most likely not be able to attain a new mortgage on the property you own. Similarly, if you lose your job, it will probably take several years of document employment history before you may obtain a new loan. You are once again locked out of the equity in your house. Lastly, the overall uncertainty of the world mandates that a prudent person maintains liquidity, use and control of their assets whenever possible. If a majority of one's wealth is tied up in illiquid assets, there is limited ability to adjust to changes in one's personal and economic environment. |
No math presented on this screen. |