Retirement plan: How can paying off your mortgage early help?
Of course, there is no one universal answer when it comes to paying off your mortgage early. It really depends on your retirement plans and on your financial situation. If you are planning on staying in your home once you retire, it might be a great idea to get rid of the monthly payments while you are still working. If you have not started to put money aside for your retirement, it might be a better idea to do that than to start paying off your mortgage early.
Other Than Your Mortgage, Do You Have Other Debts?
Paying off your mortgage early is a great idea, but if you have other debts with higher interest, you might want to focus on those. For example, if you have some credit card debts or if you have to repay a private student loan, it might not be your best option to start paying off your mortgage early. It is always a balance game, you don’t want to pay off so much of the credit card that you will default on your mortgage payments.
As we said, there is no clear answer on if you should start paying off your mortgage early, it really depends on your financial situation and your debts.
Benefits Of Paying Off Your Mortgage Early:
There are a lot of benefits to paying off your mortgage early, we have decided to list some of them for you:
No More Monthly Payments
Think about how much you spend on your mortgage every month. Now imagine that this amount can stay in your pockets, every month. This means that you will have more capital to invest, to realize a dream, or even simply to treat yourself and your family. It is also great to know that you won’t have to spend this amount every month during your retirement.
You Can Invest Without Having To Think About Your Mortgage
Paying off your mortgage early will bring you some financial freedom and it will allow you to invest without having to stress about it. Whether it is to invest more into your retirement or simply to invest in a project, not having the huge loan that is a mortgage can help you!
You Don’t Need To Pay PMI
Until you reach 20% of your equity, you will have to pay private mortgage insurance (PMI). This has no benefit to you or your family. It is simply an extra fee that works as insurance to the lender. If you start making more payments, you can save a lot of money every year by reaching that 20% early.
Peace Of Mind
If you pay it all off, you will never have to think about your mortgage payments anymore! You can do whatever you want with your money and have peace of mind. It simply feels great to know that you fully own your home.
If you have any questions about paying off your mortgage early or if you want to work with our team of experts, you can always contact us. We are ready to help you with the financial decision that will work the best for you. You can trust Asim Ali and his team of brokers.