What are the differences between good & bad debt?

Do you have questions about good debt? Mortgage expert Brian Scott Cohen has the answers you’re looking for. Contact Brian today to get a new mortgage.

What's the difference between good debt & bad debt?

Do you know the differences between 'good' and 'bad' debt? Mortgage expert Brian Scott Cohen debunks what “good debt”. He also details the types of debt that you should avoid accruing over time. Continue reading to learn more about how “good debt” can be beneficial for you over time. You can also get in touch with Brian to get more information on getting into a mortgage.

What is “good debt”?

Good debt means there’s a long-term benefit and will appreciate over time. A great example of borrowing smart is investing in your education. Whether you’re attending a traditional four-year college education or investing in a graduate degree – you’re positioning yourself to stand out amongst your competition for that next job with additional knowledge to make more money and eventually pay off the debt you accrued.

Buying a house is bad debt, right? No – not exactly.

Just like an education, becoming a homeowner is a great investment because it appreciates over time – which is important for resale. Often, renovations and upgrades add to the curbside appeal; this could give you an advantage in a competitive market and the opportunity for a return-on-investment.

If a car or furniture can last for several years, why does it negatively impact debt?

This might sound odd, but yes, furniture and a car depreciate over time. These items are considered less desirable to have over time. You can try keep them up to date, but that will cost you time, labor, and materials. Plus, there’s always competition with a better car or newer, more comfortable furniture.

The bottom line is that if you’re thinking about buying a house, and you’re on the fence because of the debt that you will incur, keep in mind that real estate appreciates over time, and this could be one of the best investments of your life.

Do you need guidance or help getting started?

Brian Scott Cohen and his team are always available – call, text, or email. (646) 584-8009 or [email protected]

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply.

Equal Housing Lender, Brian Scott Cohen NMLS ID: 410025; OriginPoint LLC fka Guaranteed Rate Affinity, LLC (“OriginPoint”) NMLS 1598647; For licensing information visit nmlsconsumeraccess.org. Operating in the state of New York as OriginPoint LLC fka GR Affinity, LLC. Operating in the state of California as OriginPoint Lending LLC fka Guaranteed Rate Affinity, LLC.

Information provided is for educational purposes only. It should not be construed as financial or legal advice or instruction. OriginPoint does not guarantee or assume liability for the accuracy, completeness or timeliness of the information. You should conduct additional research before making any mortgage related decisions.

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