Why would a person want a mortgage if they didn't need it?
January 6, 2012 12:31 PM Subscribe
Assuming that you could
buy a house outright, for cash, why would you get a mortgage? A conversation got me researching this recently. Many articles suggest that if the interest rate is low, a mortgage is better. Yet I can't for the life of me figure out why paying low interest is better than paying no interest. A person with a 30-year mortgage usually ends up paying about 2 times the principal. School me, financial mefites.
FYI: this is just a curiosity. I'm in no position to actually do this in reality.
posted by the jam to Work & Money (48 answers total) 25 users marked this as a favorite