Things to Consider Before Paying Off a Mortgage Early
If you’re able to repay your mortgage early, should you do it? It seems like a simple decision, but there are actually many sides to the story.
The correct answer to that question really depends upon a number of different factors. You need to consider these things before making a decision. Ensure that you consider the following first:
- You Have Other Debt – If your mortgage loan is one of the lowest interest debts when compared to other debts or loans that you have, then the logical thing to do is pay off your mortgage first.
- You Could Increase Your Retirement Contributions – Preferably, you would want to get to a place where you can contribute the maximum to your retirement savings plan. By repaying your mortgage early on, you can do that easily.
- You Lack Liquid Assets – In today’s dynamic economy, you should have at least 24 months’ worth of living expenses saved in advance. It is much easier to reach that goal when your home is fully paid for. However, you do not want to put all of your cash into your home to pay it off if you don’t have other assets available.
Eventually, paying off the mortgage on your home could be a smart choice, but you have to decide whether it’s the right choice for you as there truly is no right or wrong answer. We can help you look at your own financial goals and consider the above factors to help you make a wise decision.
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