If you thought mortgages were just for people of modest means, think again. From the upper class to the uber affluent, the wealthy across American make big use of home loans. Even billionaires see a benefit to financing their homes.

Why do people with these kinds of resources want mortgages? It’s an important question, and the answer shows how a home loan can be an asset to almost anyone. Regardless of your wealth or income, here are the ways a mortgage may benefit you:

Getting into a home sooner

Even if you earn enough to save up to buy a home in cash, doing so may take years. A mortgage is often the quickest way to get into a new home and start enjoying the benefits.

Accessing “cheap money”

Mortgages typically have some of the lowest interest rates of any type of lending product. Therefore, borrowing on your home may be a cheap way to keep more of your money or avoid more expensive borrowing elsewhere.

Avoiding expensive withdrawals

Even if you’re wealthy enough to purchase a home outright, getting at that money can come at a price. Dipping into investments, accessing retirement funds or selling off property can result in fees, taxes or losses. Borrowing on your home can be an efficient way to avoid those expenses.

Making smarter investments

If your mortgage has a 4% interest rate (4.139% APR) and your investment accounts are returning 7%, where’s the best place to put your money? Investing comes with risks, but for many people, it makes the most sense to put their extra money where the expected payoff is highest.

Maintaining financial security

Unexpected expenses are a fact of life, and quickly accessible cash funds are often the most reliable safety net. Having a mortgage can enable you to set aside the cash you need to protect your financial security.


For these reasons, purchasing a home using a mortgage, making the standard payments and refinancing the loan when advantageous can be a wise financial strategy. It may even be beneficial to increase your mortgage balance at times by taking cash out to consolidate debt or put toward a home renovation, college tuition or another investment.

This doesn’t mean simply buying a home or getting a mortgage will guarantee you wealth. It does mean, however, that if you want to imitate the successful habits of the affluent, you can start by looking for opportunities in your home financing. Contact us for a free mortgage consultation for your specific situation.

Draper and Kramer Mortgage Corp. does not provide financial planning, investment, tax, accounting or legal advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, financial planning, investment, tax, accounting or legal advice. You should consult your own financial planning, investment, tax, accounting or legal advisers before engaging in any transaction.