The American dream of home ownership is a foundation of our culture. A cozy lace-curtained cottage on a quiet cul-de-sac is an aspiration for many newly marrieds. Even better is the thought of owning that home outright.
So the question is, if you had the opportunity to pay off your mortgage early, should you? Maybe, maybe not. It depends upon what the rest of your financial picture looks like and the interest rate you’re paying on your current home mortgage.
For example, if your credit card debt or other debt held carries a higher interest rate, and it generally does, it might be more prudent to pay that debt off first. Are you leasing rather than purchasing your vehicles? Unless you get reimbursed for vehicle use by your company, it’s almost always more financially wise to purchase rather than lease a car, particularly if you drive more than 10,000 miles a year.
Is your mortgage interest rate favorable? If you’re near the current 30 year low of 4% you’re probably better off channeling any extra cash into savings or other, safe investment vehicles or retirement accounts.
If you’re confused or just looking for the best advice, you might consider seeking the assistance of a certified financial planner to help you chart the best financial course.
Financial Resources:
- Go to http://www.mortgageloan.com/calculator/mortgage-payoff-calculator to find out much you’ll save by paying more on your monthly mortgage payment.
- Learn more about Financial Planning and find a Certified Financial Planner in your area by going to the Certified Financial Planner Board of Standards, Inc. official website.
