The truth of buying a real estate - it's a thirty-year debt
If this is an instinctive, and uninformed response to the prospect of taking out a mortgage, then it's your actual problem. Ironically, if it's a considered fear based on knowledge, then it's a presenting problem. This is usually an irrational fear. You're looking at a mortgage in the wrong way. While it is in some ways a thirty-year debt, that's an overly simplistic and emotional way to view buying a home.
First, a mortgage need not last thirty years. You can obtain fifteen-year mortgages, and most mortgages today have no prepayment penalty, meaning you can pay it off as soon as you'd like. Conversely, you can stretch the debt out for more than thirty years by refinancing whenever it makes sense.
Second, the impact of making mortgage payments should more rationally be viewed as a monthly expense rather than as a thirty-year debt. And that monthly expense isn't as daunting as it might at first seem. The interest and tax portions of your monthly payment are tax deductible. That means its impact is reduced. Also, since you're making payments on an asset you'll eventually own outright, mortgage payments aren't just expenses; they contain an element of long-term savings.
If after learning about mortgages, and viewing them as monthly expenses, you find that you're still frightened by the prospect, then you need to revisit the whole issue of buying a home. While your fear is still irrational, it's masking deeper fears, perhaps about commitment.
The more you can learn about mortgages the less fear you'll have. Besides speaking with bankers, pick up and read a few of the latest home-buying books in the bookstore or library. Check out the mortgage resources available on the Internet. Perhaps the best online sites are those that offer calculators that help you figure out your affordability, the tax impact of mortgage payments, and the advantages of various interest rates and terms.
tags: real estate, debt
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