Did you know that approximately 1/3 of homeowners don't have a mortgage?
Who are they?
Many would think that they are the wealthiest people. But, that isn't always the case. Some wealthy owners enjoy the tax advantages of carrying a mortgage on their home. Often they are able to itemize their deductions, and this includes mortgage interest paid.
Some of the humblest home owners are the ones that have no mortgage payments on their homes at all.
Some families with shaky credit are pooling their resources with other family members to purchase a small, inexpensive home together for all cash. We are hearing of more and more multi generational families moving in together, to make living a bit more affordable for all.
Today, many couples reaching retirement age, are doing what they can to get their mortgages paid down or paid completely off. They don't want that payment hanging over their heads in retirement years. I can't blame them.
Here in Brevard County on Florida's Space Coast, we are seeing a large percentage of buyers purchasing their homes with cash.
On the other hand, some feel that with interest rates as low as they've been, if they can qualify for a mortgage, then it's best to go ahead and borrow on a simple interest loan, with no mortgage prepayment penalties.
I think it depends on an individual's financial position and their preference as to which is better, a mortgage or no mortgage.