Being debt free has different connotations to different people. For some people, being debt free implies having absolutely no debt at all. Again, for some people, being debt free implies they are free of consumer debts but have not yet paid off the home mortgage loan. But, debt is slavery and one must try to get out of this distress as soon as possible. Given the serious consequences of debt, the pertinent question that may crop up is whether one should purchase a home in cash or one should take out a mortgage loan to purchase a house. However, in order to purchase a home with cash, you should have accumulated that money with regular savings.
Anyways, there are many homeowners who are interested to take out a home mortgage loan to purchase a home. There are some strong reasons behind purchasing a home with a mortgage loan instead of purchasing the home entirely in cash. It is however recommended that while taking out the mortgage loan, you must make 20% down payment. Again, before taking out the mortgage loan, you must conduct a thorough research on the different types of mortgage loans available at the market place, and must find out the mortgage loan which is cheap and affordable to you. Here we discuss about some reasons behind opting for a home mortgage loan.
• It may be the case that you are residing in a very high cost area. But, you may be interested to take out a home mortgage loan in a very low cost area.
• Again, you may be staying in a rented house and paying rent. In that case, you may be willing to taking out a mortgage loan as the monthly mortgage payment that you will have to make may be less than the rant that you pay.
• If you are currently having a big mortgage, you may be willing to switch to a much smaller home mortgage loans.
There are the some reasons behind opting for a mortgage loan to purchase a house, instead of purchasing the house entirely in cash.