Should I Pay My Mortgage Early?
Whether you should pay your mortgage early will depend on your financial status and your capacity to meet your other obligations.
If you have abundant savings and your salary permits you to afford your monthly expenses, you should consider using your leftover money to pay off your mortgage as soon as possible. Paying off your mortgage early will help you to reduce overall interest payments and will build equity in your home.
On the other hand, if your savings are stretched and you are having trouble meeting normal monthly living expenses, paying off a mortgage early will eat into your savings. It may deplete the money needed for emergencies and could otherwise limit your ability to meet other obligations and financial needs.
It's important to balance your available funds with your mortgage repayment schedule. Pay careful attention to the risk of using savings to pay off your mortgage; make sure you can cover your household costs and maintain a fund for unexpected emergencies and other problems.
When you are thinking about using extra money to pay off your mortgage early, keep in mind that you should still retain emergency funds, plan for retirement, and continue to work toward financial independence. Consider working with a financial and legal advisor to develop your payment plan.
- What Is a Mortgage?
- What Type of Loan Should I Get for My Home?
- What Are the Different Types of Mortgage Loans?
- What Is the Process of Applying for a Mortgage?
- What Is the Difference Between a Housing Loan and a Mortgage Loan?
- What Is the Difference Between Government-Insured Loans and Conventional Loans?
- What Is a Down Payment?
- How Much Down Payment Will I Need to Provide?
- Are There Any Mortgage Loans with No Down Payment?
- What Is an Escrow Account?
- What Is Home Equity?
- What Is the Difference Between a Loan and a Mortgage?
- How Do Mortgages Work?
- Where Can I Get a Mortgage?
- What Should I Look for in a Mortgage?
- What Is the Average Mortgage Length?
- What Are the Advantages of a 15-Year Mortgage over a 30-Year Mortgage?
- What Are the Advantages of a 30-Year Mortgage over a 15-Year Mortgage?