Mortgage an Asset or Liability?

A mortgage is a liability. While a house itself can be an asset, a mortgage is the loan taken out to purchase the house, representing an obligation to repay the lender. The mortgage is listed as a liability on the borrower’s balance sheet, while the house itself is listed as an asset.

Your welcome Hillary

A mortgage is always a liability until it’s paid off, especially for older people. At my age I would never have a mortgage!

I would say it can be both on the balance sheet depending on whether or not, you own the property out right or if you owe a balance. If you still owe a balance then it is a liability. If you own it out right, then it is an asset.

In my opinion it it could be considered both depending on different scenarios. A liability to the homeowner because you owe debt to a lender.  Once mortgage is paid off then it is an asset to the homeowner or if a homeowner decides to use as a rental property/airbnb then it would also be an asset as he or she is is being paid. On the other hand as a lender always an asset to them because they are collecting a debt from the homeowner.

I wouldn’t say anything more Alexis, sad it all correct. In the 80’s I didn’t have a mortgage for my first house I paid full for my house. And that an asset.

Morgage is a liability until you pay off the loan then it becomes an asset.