5 Reasons a mortgage should be your priorty

1. Buying is Often Cheaper Than Renting

In many real estate markets the cost of a mortgage is less than the cost of a similar rental property. This means that though the mortgage may cost more upfront due to the down payment it will also cost less monthly. This can free up more money in the monthly budget for other things and can also allow the property owner to save more money. A conscientious property owner may also pay down their loan faster by putting extra money into the mortgage every month.

2. Mortgages Build Net Worth

When a property owner pays their mortgage all the principle goes into the property owner's net worth. Once the home is fully paid off the property owner will have an asset that will build over time. Renting, however, is just an expense that the renter needs to pay every month and will not build up any assets for the renter. Property owners that have a mortgage can also purchase other properties to build additional net worth.

3. Interest Rates Are Extremely Low

Interest rates are extremely low right now through quality lending institutions such as Clydesdale Bank. This means that it is the right time to buy property for many people. Interest rates may go up in the next few years and just a slight change of interest rates can cost a home buyer thousands if not tens of thousands of pounds. It is very important to secure the lowest possible interest rates when buying property.

4. Property Increases In Value

Historically, property increases in value over time. This means that having a mortgage is an investment that will grow the longer the property owner has it. Property can eventually be sold for a profit or retained within the family. Real estate is usually fairly stable depending on the surrounding market and many property owners will find that their property value will increase at least on par with inflation. However given the crashes in recent years this is not as fool proof as it once was, so be cautious if investing in property.

5. Property Is Important For Retirement

The earlier a property owner buys a property the sooner it will be paid off. Paying off a property makes sure that the property owner will have somewhere to live during their retirement and that they will not have to make a monthly payments. Paid off properties can also be borrowed against for monthly expenses if a property owner needs the additional monthly income or a lump sum payment.

Fiona Harris contributes to many blogs including Financial Newsgroup, where she helping people save money and keeping abreast of latest financial developments.

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