People always fear mortgage since they have a general opinion that if it is not taken off their chest it would cause them more harm than gain but if you have been able to get hold of a low mortgage rate then it would be better to invest the extra amount in an investment vehicle which could maximize their returns and in case you pay off your mortgage then the returns on your investments are equal to the mortgage interest rate.
For some people mortgage is a kind of forced savings and with every installment some form of principle is being paid down in the loan which leads to an increase in the equity of the house and if the value of the house is also increasing the equity too goes on to increase.
Since mortgage interest is deductible therefore it would be a better option to borrow against home equity for purchasing some luxury or undertake home improvements. These are some of the points which you should give a thought to while going for mortgage.
