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8. Mortgage Loans
If you have ever watched the show House Hunters on HGTV, you know that 99 percent of realtors will encourage buying a home with a higher sales price that the buyers originally intended. Why? Because they are paid through commission-only, so the higher the price, the higher their portion.
Not only will they encourage it, they will justify it by telling you it is a financially sound plan because you will get a bigger interest write-off on your taxes. What they don’t tell you is that unless the sales price is in the millions, you may only be saving a few hundred extra on your taxes. What you are left with is a hefty mortgage that often puts a strain on your finances.
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