Is Debt Bad? Not When You’re Using it Right!


Filed under: Borrower Tips


It might sound ironic for a mortgage professional to talk about how debt is bad. Of course, it is obvious that certain types of debt, such as credit cards, aren’t a great choice. We all know carrying debt is bad, BUT mortgage debt can be good debt.

Unless you can afford to pay all cash for a house, a mortgage is a great option that is essentially paying yourself to live. This strategy will eventually result in paying off the mortgage. In fact, financing your home is the one kind of debt that can be used as a tool to help you and build wealth. The way this strategy works best is when you consider the long-term benefits of owning real estate.

Maximizing Your Financial Future

When a mortgage is done right, it can be the smartest debt that you ever take on. The simplest explanation is that it is going to cost you to live somewhere. You are either going to pay rent, or you will pay a mortgage. The good news about a mortgage is that you can pay it off, then you can truly live free of a monthly mortgage or rent payment.

Keep this concept in mind when you are considering the long-term financial benefits that are available for your family. You will be glad that you towed the line with your mortgage payments when it comes time to retire and you don’t have to worry about a big rent payment every month. You can create financial stability and set yourself up to enjoy the future without the stress of a house payment.

Ride it Out for the Long-Term Benefits

Even though you are taking on a lot of debt for a mortgage, you can ride it out to pay off the home so that you can enjoy the financial benefits in the future. Stay the course and hold onto your real estate, and you will see great financial success from this investment strategy.

I’m always here to chat if you would like to know more about homeownership and how real estate makes it possible to build wealth over time. I’d love to talk to you, and invite you to comment, share, or like this info to help other people see how mortgage debt can be good debt.


Franklin Loan Center | NMLS 237653
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