Life is unpredictable. From illness to divorce to job loss, many factors can take a toll on your income that can leave you struggling to pay your monthly mortgage payments on time. If you have lost your job and are unable to make your monthly mortgage payments, job loss mortgage insurance can help cover those […]
Should You Keep Your Mortgage or Pay Off the House?
You’ve been thinking about paying off your home early. Should you do it or should you keep paying your regular Kansas City mortgage payments? When it comes to this subject, there are a few different opinions.
Paying Off Your Home Can Bring Peace of Mind
Depending on the length of your loan term and your loan amount, paying off your home can save you tens of thousands of dollars. It also can provide you with security, knowing you have an affordable place to live in case of declining income.
If you are close to retiring, or already retired, and have the funds to do so, it may be a good idea to pay off your home in order to lower your monthly expenses. If paying off your Kansas City mortgage is a concern and causes panic for you, it may be better to pay off your home to give yourself peace of mind. You are likely to rest easier knowing that you are not responsible for any payments to your mortgage lender anymore.
If you are a borrower that has a longer loan term, such as 30 years, and a low interest, consider investing the difference you would spend on paying off your Kansas City mortgage. Doing so will likely provide you with more wealth in the long run.
Keeping Your Mortgage Can Help You Save Money
Many people consider paying off their mortgage a bad financial move. However, keeping your Kansas City mortgage simply because of a mortgage interest tax break is not the best idea. Although you do receive a tax break on mortgage interest, the break you normally receive does not outweigh the cost of the interest. If you are looking for a return on your investment, keeping your Kansas City mortgage is not the way to go.
Although you may not be able to recover as much as you spend on interest each year, if you keep your Kansas City mortgage, you will probably end up refinancing. In some cases, refinancing your home loan can help you save even more money by decreasing the interest over the life of the loan.
As the borrower, to keep your Kansas City mortgage or to pay it off is ultimately your decision. If you need assistance in deciding the right path for your financial situation, contact your mortgage professional.