Should You Pay Off Your House Early?

Should You Pay Off Your House Early?




There are advantages and disadvantages to paying your mortgage off earlier. Today we are going to take a look at the most important points from both sides of the coin.

Advantages

Paying off your home earlier will give you cash flow. For most people this is around $1500 – $2000 plus per month. Just imagine what you could do with this additional money. You have the option to invest the money in a standard bank account or you could be more aggressive with high interest term deposits. You will definitely have security in that you will out right own your home. You’ll have additional money to buy a investment character in turn increasing your net wealth. It also method that your tenants can pay for the new mortgage.

Disadvantages

Many will people will argue that the years of sacrifice to pay off your mortgage just isn’t worth the additional stress. There are also arguments that your money is not diversified enough to give you the benefits of varied earnings from different supplies. And you may lose out on some of the popular tax breaks because you don’t have a mortgage.

Conclusion

In my personal opinion paying off my mortgage was the best decision I made. Yes it did take a little sacrifice and some creativity but all in all it was well worth the time it took to do so. Today I have security, investment opportunities and a pretty relaxed lifestyle. This is what many home owners dream of. And with the use of compound interest, I am set up for ten more life times.




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