Managing your expenses and paying off the mortgage can be a hassle if you don’t have a plan and move accordingly. The best alternative to a mortgage is being able to have the funds. Every home owner wants to pay off the mortgage as quickly as possible while some consider a slow action plan.
Some benefits to consider why you should pay your mortgage off quickly you can by stretching the limits a little bit if possible;
- Financial Freedom – Every home buyer wants financial freedom as early as possible and enjoy being debt free. As mortgage payments are often the biggest expense. Sometimes refinancing can be an alternative.
- Investments – Once the mortgage is paid there are many ways as a home owner you would think of investments depending on the rates you will receive on the investment. Investments are always a great solution as they not only help you to secure a stable financial resource for retirement but also are an amazing way to invest for the future.
- Retirement Income – When you are retired it is ideal to pay off the mortgage as this helps to reduce the pressure of tapping your retirement savings. Thus your retirement savings can be made more accessible to other activities and you would be more financially organised.
There are certainly a few con’s if you decide to pay your mortgage off that you should reflect on before making the final decision;
- Loss of Tax Deductions – Many homeowners look forward to the mortgage interest tax deduction come tax season. Paying off your mortgage will eliminate that.
- Reduced Savings – In order to pay off a mortgage you need the assets to do so. If you use your entire savings to pay off your mortgage than that money is no longer available to save for things like retirement or college tuition.
Having a clear picture always helps in the decision making process. So the above viewpoints discuss the impact of paying of your mortgage early can have if you have any suggestions that have helped you during paying off your mortgage payment feel free to leave comments. If you are looking to buy, sell, invest in real estate view our new listings here