Should I Pay Off My Mortgage Early?
For most of us, our home is our most valuable asset. It is also our most significant liability and the biggest loan we will ever have to repay. Therefore, it makes sense to want to settle out your mortgage as quickly as possible.
With so many factors involved, whether or not to pay off your mortgage can be a difficult decision.
Even in today's low-interest-rate environment, interest can add thousands of dollars to your loan over the term of your mortgage. Paying off your mortgage early will save you money in interest.
Build Equity and Net Worth Faster
Equity is the portion of your home that you own outright; it's the difference between your home's value and the amount you still owe on your mortgage.
Peace of Mind
If you worry about making your monthly payments or want to be debt-free as soon as possible, paying off your mortgage early may be the best decision.
No Monthly Mortgage Payment
Once you pay off your mortgage, you will no longer have a monthly mortgage payment.
Tying up Funds in Your Home's Equity
If paying off your mortgage early limits your access to cash, it can be detrimental when you need to access that money for investments, travel, or unexpected expenses.
Paying off your mortgage early also means missing out on other opportunities, such as investing in a new business idea or a diversified portfolio, which could offer greater potential returns.
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