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Woodland Developments & Realty Recent News

Should I Pay Off My Mortgage?

Posted: March 23, 2021

Greetings!

We have received a lot of inquiries about interest rates and home mortgages, and whether or not one should pay off a current mortgage. So I thought I would just share a few thoughts on the subject of paying off your current mortgage.


I know for many paying off one's mortgage is like winning the lottery; suddenly you feel this weight off your shoulders and think about all the other things you can do with your money. It might improve your credit score. No more interest to pay on your loan so you may save thousands of dollars in the long run. It frees up cash so perhaps you can travel more or buy something you really need. Believe me, I think it is a good idea to be out of debt, and stay as debt free as possible, but there are some other factors to consider.

Investing in real estate can help you accrue wealth in the long run; it can provide a hedge in your overall investment strategy. There may be a prepayment penalty provision in your loan agreement so be sure to check it over before you jump to pay off your mortgage. You may miss out on tax deductions otherwise not available. Paying on a mortgage is a good practice for many who may otherwise squander the extra cash they have available each month. Finally, with interest rates at historic lows I would recommend you check with your accountant, financial planner and lender before you take the leap to pay off your mortgage.

Enjoy!
Gary