Some people might think that paying off an mortgage early makes sense. In some cases it is. Mortgages are generally secured loans that are tied to real estate, like houses, lands, etc. There’s no “good debt,” right? It makes sense to pay off the debt as quickly as possible and save money by paying low interest rates. Right? You feel powerful & mighty when you buy a beautiful home for your family. It’s exhausting to have a loan (or mortgage) looming over your mind for decades. You want to get rid of it, and move on to your next big thing.
But NO! A mortgage is a completely different type of loan. Mortgages have a relatively low interest rate. However, paying them off all at once can be risky and less advantageous. If you decide to finance your mortgage sooner, you should take a step back and consider whether it is worth it to you to pay off your mortgage early. In some cases, for example, paying the mortgage off earlier in order to save some money on interest might not be beneficial if the amount is invested in the right area.
Is it a good idea to pay off a mortgage early?
Did you know that mortgage interest is tax-deductible? Mortgage interest can be deducted from your tax bill & is a great incentive.
What are the downsides of paying off your mortgage early?
The benefits of paying off your mortgage early are significant. It has some very serious drawbacks and it is important to understand if paying off your mortgage early can be a negative. Please consider the pros and cons before deciding to spend a significant amount of money on the mortgage.
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