Should You Pay Off Your Mortgage Early?

With a constantly changing economy and fluctuating interest rates, you may want to consider fully achieving your dream of home ownership by paying off your mortgage early. 

For some people, outright owning your home after paying it off early is ideal. Others say it's better to live with certain appreciable debts, using available cash flow for other needs. 

What You Can Save

When you pay off your mortgage early, you can save a lot of money in the long run that would otherwise go towards interest, be free from monthly mortgage payments, and have peace of mind. 

Every time you make a mortgage payment, it’s split between the principal and interest. During the first several years, most costs will go to interest and fees, meaning you won’t see the difference for a long time.  

But, once you start getting past the interest, you will see the difference. The longer you take to pay off your mortgage, the higher the interest will increase.

Is it Worth Paying Off Your Mortgage Early?

The sooner you pay off your mortgage, the less interest you will pay over the life of your projected amortization. 

Accelerating your mortgage repayment can be as simple as adjusting your payment frequency to accelerated weekly/biweekly payments from monthly or semi-monthly installments. 

Because of how things are calculated, just splitting your monthly payment into two biweekly payments can shave months off your 30-year mortgage. And if you're paid every two weeks, it's often easier to budget this way as well. 

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