Mortgages seem to be synonymous with commitment. All around the world people take a deep breath before getting into this kind of debt; indeed, whether youâ€™re getting a home loan in the UAE or the USA, you will want to consider it seriously. Yet are mortgages as big a commitment as most people think?
Anyone who is used to paying monthly rent will find mortgage repayments none too onerous. Indeed, you can set mortgage repayments to the level of your previous rent and you might not even notice the difference. This means that a reasonable mortgage is not a huge commitment, and you might even find your month to month finances unchanged. This is a great situation as you will be slowly acquiring an asset, rather than seeing all your earning go to your landlord.
Most people get a mortgage when they intend to stay in the same place for a significant period of time. Yet this doesn’t have to be the case, and just because you have a mortgage it doesn’t mean you canâ€™t move around from one place to another. You can always sell your house and repay your mortgage in one fell swoop, or rent it out. Your tenants will then be effectively paying off your mortgage for you, allowing you to bide your time until you’re ready to sell.
Mortgages can also be quite flexible â€“ you can get on a fixed interest rate, however, it’s always possible to refinance and set yourself up at a new rate. This means that you can respond to changes in interest and keep your repayments at an optimal level.
Despite their reputation, mortgages are not as big a commitment as they are often made out to be. You can always buy your way out, and the monthly payments are unlikely to be any more than the rent you are accustomed to paying. This should give people considering a mortgage food for thought as it is always a good idea to get a foot up on the property ladder â€“ indeed, itâ€™s better to pay your debts than spend your money paying off your landlordâ€™s mortgage.