Friday, July 17, 2009

Is Mortgage Debt?

Some lenders define home mortgage as "investment". Others go even further to say that mortgage is not debt. That's distortion of truth and reality.

I believe our home mortgage is debt because we "owe" the lender, and also because we have to pay interest for the remaining principle until it's completely paid off. I wish I could say we 'own' our home, but the truth is our home is not really ours until the mortage is paid off completely.

With the current economic turmoil and plummeting housing market, many homeowners are realizing buying a home is not a guaranteed investment any more. Depending on where you live, you might better off by renting.

If you have questions regarding mortgage or refinancing your current mortgage, I would like to refer you to following resources:

Crown Financial Ministries - You can find many usuful calculators on their website such as loan calculators, different mortgage calculators, and even a rent vs. buy calculator!

Dale Vermillion - I like to listen to him answering mortgage-related questions on Moody Radio. He can be found at I haven't read it yet, but I heard many good things about his new book Navigating the Mortgage Maze.