Is Your Mortgage Really a Debt?

A lot of people consider a mortgage and debt when they talk about their Louisville's house mortgage. What a mortgage is, is actually a debt with an investment attached to it. Can it really be called a debt when it is an investment as well?

When you are making a budget and you need to list all of your debts, your mortgage is listed as one of your debts. And when it comes time to list your investments it isn't added. This is because it is purely our mindset that makes us think of a mortgage as a debt.

When looking at your assets, you can look at the glass either half empty or half full. You're mortgage is a heavy load to bear, no doubt. But you can look at it like you're struggling every month to make the payments, or you can look at it like the best investment you'll ever make and try to make extra payments to strengthen your investment.

Andrew Carnegie once said, "90% of all millionaires become so through owning real estate."

People who are afraid of going into debt are the reason they're still renting. These people are fine putting low-rate money into savings accounts that don't have the same ROI as the housing industry. Real estate may take a few blows here and there, but it always bounces back once you wait out the storm.

The bottom line is that real estate is an investment. It's not something that can be put on a credit card like a new pair of shoes. The shoes are a debt because it will depreciate over time. Real estate is a tanglible asset that appreciates over time and can possibly lead to big money down the road.

Post a Comment