Money Experts Debunk 8 Myths About Buying a Home

A common personal finance myth says that all debt is bad and that misconception fuels a real estate myth that says it’s always wise to pay off your mortgage as quickly as possible.

The truth is that if the loan is reasonable, there are probably better ways to spend that money.

“There are many reasons not to pay off your primary residence,” said TJ Adams, owner of Adams Home Solutions. “First, the money lent for a primary residence is likely to be low-interest relative to other forms of lending. The intent of a 30-year loan is to lock in your expenses, thus making the house more affordable over time.”

Low-interest mortgages are good debt. The whole point of good debt is to free up your finances for investments that will pay returns that are higher than the loan rate. 

“That same money, or a portion of that, could earn significant interest,” Adams said.