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The Pros and Cons of Getting a Mortgage


As a long-term plan, owning a San Francisco house is something many people aspire to. The advantages of owning a house outweigh any reason against it. However, for most buyers, they don’t have enough money to pay for the house in cash. This is when getting a mortgage becomes helpful. However, since the mortgage is a long-term commitment, one should consider the pros and cons of getting a mortgage for his first house.


Low-interest: Mortgage can be considered since it offers lower interest rate than other types of borrowing.

Tailored-fit borrowing: You can arrange the best mortgage type that fits you. Work with the mortgage agency to find out what kind of mortgage you need and how much you can pay for a specific schedule.

Long-term mortgages: There is now an option for a 30-year mortgage instead of the normal 25-year mortgage. This means that your monthly payments will be lesser as the cost will be spread over a longer period.  However, the full amount to be paid over a longer term will be more.

As an investment: Getting a San Francisco real estate mortgage is more practical, and in most cases, cheaper than renting. If you are currently renting and the cost of the rent is almost the same as paying for a mortgage, then getting a mortgage means that you are putting your money into something that you should eventually own.

Tax Advantages

Another advantage of being a homeowner is that you can qualify for a tax break. If you are a homeowner, you can apply for tax deductibles on your taxable income. A tax deduction is always welcome since it will give you extra savings that you can put off for other uses like paying your child’s tuition, paying for other loans, or starting a small business. What’s good about the tax break is that it is being deducted right away instead of waiting for a tax return every year.


Debt: A mortgage is another form of debt which you need to pay within a certain period of time.  You have to pay more than the initial amount of the house because of its interest.

Secure loan: It is always possible that you could lose your house if you can’t pay your debt.     

Additional charges: Other add-on charges like valuation and documentation fees are just some of the costs that you need to allocate budget for.