With interest rates now dropping to historic lows, you may not be in a hurry to pay off your mortgage. Unfortunately, interest rates won’t always stay down. Sooner or later, they will start to rise and you will have to start thinking about paying off your mortgage. But when is the best time to pay off your mortgage?
Here are some situations that you may want to consider:
When you want less risk in your life
Don’t forget that you don’t really own your home until you pay off that loan.
Most people who manage to save some money think about a million different ways to invest it. You can use the funds to buy stuff, or to start a business, or much more. But there’s no investment as safe as becoming the owner of your own home.
If you pay off your mortgage, not only will get rid of the risk of losing your home, but you will actually increase equity.
You’re paying too much and refinancing can’t help
If you’re rates are high but the amount that you still need to pay is too small for refinancing to be worth it, you should definitely pay off your mortgage. Start by making a plan to pay everything off faster. Then stick to it. You might have to make some sacrifices, but debt-free life is great!
When you want to save some money
Those monthly payments are annoying, aren’t they? And they’re eating up a lot of your funds. You can save by eliminating this expense. The fastest way to do it is to pay everything off, especially if you finances allow it.
The bottom line
You’re already paying off your mortgage every month and you will get rid of it one day. Why not sooner rather than later? If your finances allow it, go for it. You definitely won’t regret it.