Paying Off Mortgage Early, Techniques For a Debt Free Lifestyle
Mortgage Pay Off Strategies
Paying off mortgage early is a financial decision at some
point most homeowners will face in their lifetime. The
decision to pay off mortgage early is a very simple decision
to make. The problem arises when we actually get down to
making extra payments every single month. This may start off
well but for most of us the system is designed to work
against us and we end up stop making the extra payments.
Think about how much your life would change if you get to
keep all the mortgage payments for yourself. If I no longer
have to send a check to the mortgage company every month,
life would surely be entirely different.
Let's say you still have enough cash to live your dream
lifestyle even after you have paid all your bills for the
month.
Should you really think about making extra mortgage
payments each month? I won't. If my finances are more than
enough, I will not bother paying extra towards my mortgage
if I am sure that I can make regular payments with the
amount of money that I am making per month.
What I want to point out is this: our income determines our
financial decisions. You may now think I am stating the
obvious . But allow me to expand on this a little bit.
Most of us come up with financial plans with our short-term
and long-term needs as our basis. We consider two things as
our most important long-term needs.
Making sure that we have money to spend throughout our
retirement years and retirement savings.
So, should you make paying off your mortgage early a goal
before your retirement?
And this is where it gets tricky on whether you should pay
off your mortgage. Using the extra money and paying off a
mortgage faster will free us from debt in retirement but
with less savings.
On the other side, you can save thousands of dollars of
mortgage interest while leaving your retirement savings
untouched. Making this particular decision in paying off
your mortgage involves no risks.
Finance experts would tell you to invest on stocks and save
paying your mortgage for later because doing this would put
you in a good position when you retire even when you still
have mortgage debt. If the market does well, you will end up
getting better returns as compared to what you will be
getting when you pay off your mortgage.
Both these techniques are good in themselves. But because
your funds are limited, you have to go for only one of these
options.
And I want to make this decision is easy for you to make.
There is a new method that can help you slash 13 years off
your mortgage payment term and save thousands of dollars in
the process. This method, which is called mortgage
acceleration, allows you to pay off your mortgage without
spending more or changing your lifestyle.
This technique can be done through the use of a home equity
line of credit as a tool for paying off mortgage early
without spending more cash.
Now, you no longer have to choose between investing and
paying off your mortgage debt.
