Paying off your mortgage? Who doesn’t want to get rid of their debt? No long owing money on your home and paying off your mortgage so that you own your home is a huge part of the American Dream. But don’t write that check just yet—there may be conflicting circumstances that will change your mind. Paying off your mortgage early will no doubt leave you with more cash every month, less interest paid, and a great credit score, but there are also negative consequences as well. At Colorado Horse Property we know that everyone’s financial situations are different, so make sure you know the facts before making any decisions.
Paying Off Your Mortgage Pros
- Paying off your mortgage will leave you with peace of mind knowing that you don’t have a mortgage to worry about.
- You will save on interest, regardless of your current mortgage rate.
- You can lower your housing costs, allowing you to save for more important things like retirement.
The Cons
- You could use the money that you have to pay off your mortgage to pay off other debts that have higher interest rates.
- Your employer might have a matching retirement plan that would benefit you a lot more.
- You have more urgent financial needs like emergency fund, life, health and disability insurance. Don’t pay off your mortgage when the money is better used somewhere else.
- If you believe that high inflation will affect the value of your mortgage then paying off your mortgage could become too expensive. Contact your property adviser for more information on inflation before making a decision.
- You can invest at a higher rate than your mortgage.
- You might not qualify for a mortgage currently.
