Is It a Good Idea to Pay Off Your House?
The American Dream…Owning your own home. For the majority of us, that means a mortgage.
Most home mortgages are set up for 30 years duration. With that in mind, most people think they will have moved on before 30 years is up, and the idea of paying the house off is not even considered.
So does that mean that paying on a mortgage is a life-sentence?
It doesn’t have to be, many people are planning and working their plan to get their mortgages paid off early. Although this may not be the thing for you to do, it’s definitely an idea that everyone should at least consider.
Why pay your house off early?
- The best reason I can think of is that you will save thousands of dollars in interest payments. Most people who have a fixed rate mortgage of 30 years will typically pay more in interest than on the principal of the loan.
- Once your mortgage is paid off, the money for your eliminated payments can begin to work for you in other ways, savings, retirement plans or other investments.
- Some people who have chosen to heavily invest while still paying on their mortgage are at risk if their investment fails, or some other disaster strikes and they could be left with nothing to fall back on, but still have mortgage payments to make.
- In times of economic unrest, you can rest easily knowing that you are free of debt and your home is safe and cannot be lost.
Is There a Downside?
There could be a few negatives, such as pre-payment penalties or some tax ramifications. But these things need to be determined on an individual basis.
At Lifestyle Equity Builder that’s exactly what we do.
We will take a good look at your financial profile and do a complete analysis to give you the answers that will help you make the best decision for you.
Should you pay off your house early? Ultimately that’s a decision only you can make, but we can give you the tools to do it wisely.
Contact us for a Free Financial Analysis Today!