Should You Pay Off your Mortgage Early?

Hey, everybody, it’s Janine Sass or your Chicagoland realtor right here in Schaumburg. And today’s topic is, should you pay off your mortgage early? We’re going to be looking at some of the pros and cons today. So let’s not delay and let’s dove right in when it comes to paying off your mortgage early. There’s definitely some things that you should consider and weigh. One of the things is do you have other debt that is higher interest than your mortgage? Oftentimes, our mortgages are currently hovering somewhere in the 4% mark. Do you have other debt like credit cards at a high interest? Because experts do agree that those are the ones you should tackle first.

Here’s the second consideration when it comes to paying off your mortgage early. Do you think you are going to stay in the home for a prolonged period of time? Or is this home more of a stepping stone for you? If it is more of a stepping stone, you really don’t want to tie up your funds into that house. Do you think that maybe the money can be put to use in a different way? Do you think you can maybe get a better return on your investment by investing it? So think about that when it comes to putting your money to work for you. Our third consideration is talking about emotional baggage, and this is the big girls who are telling you being in debt is a bad thing.

You need to be debt free, 100% debt free. So if you look at it from an perspective of financial wealth, is being debt free as in like having no mortgage, giving you what you need in life? Or do you think your money should work for you in different avenues where it is okay to have a certain amount of debt as long as you have a financial plan in place. And lastly, age and risk factors matter when it comes to investing and when it comes to paying off the mortgage. Generally speaking, your appetite for risk is always going to be decreasing the closer you get to retirement age. You might not need to take the opportunities that are presenting themselves to you to make investments to make your money work for you. So oftentimes towards retirement age, there’s less tax benefits that you can get out of certain things.

So you may want to consider having that plan in place when you are reaching retirement age or when you’ve reached it. So I hope this helped. A couple points to consider when it comes to paying off your mortgage early. If you have any questions, you can reach me directly at 8477541835. And I look forward to helping you with your next question right here on my path. Past real estate without the fluff.

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