Re: Can a mortgage be profitable?
OP, with mortgage rates as they currently stand, a mortgage is just about always a profitable venture.
EXAMPLE:
You buy a 300k house and put 20% down. You get a 30 year fixed mortgage at 6.5%. Instead of putting the remaining $240k into the house, you invest it. Let's say you make 10% per year, 30% of which goes to taxes. You are making .5% each year.
Let's assume you also get to deduct the mortgage interest you pay on your tax return. At the same 30% tax rate, your net rate on your mortgage is now 4.55%.
A final benefit is that you aren't tying up all your money in a single asset.
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