Pro: It frees up cash to invest or pay down debts One big benefit to paying off your mortgage is that it frees up a lot of cash. You no longer have hefty monthly payments to make and, instead, can invest those funds in other — possibly higher-earning — investments. In the long ru...
Another downside to paying off your mortgage is lower returns. If you put 20% down, a 4% appreciation on the property means a 20% cash-on-cash return thanks to leverage. For example: $100,000 down payment on a $500,000 house that appreciates by $20,000 means your equity increased by...
it's really hard to pay it down any faster than I absolutely have to. But I totally get that being mortgage-free in retirement is where you want to be. That would give you so much more freedom. Not having ...
Most financial advisors agree that it's a good idea to prepay your mortgage to save on interest and accelerate your payoff date, regardless of whether you have a 15- or 30-year note. But they don't always agree on how much you should prepay. The Get Rich Slowly blog runs down the ...
Instead of putting extra cash toward your loan balance, Arzaga says homeowners should first considerother uses of money that could be used for mortgage prepayment, such as whether they should be saving more for retirement, paying down credit card debt or buying life insurance, disability insurance...
Over time, paying down debt has the potential to significantly improve your health and overall quality of life. No matter how small, any step toward becoming debt-free is a positive move in the right direction. Once you’ve paid off your debt, you will still face challenges, including fight...
Any payments, rent or otherwise that are turned over to a collection agency will immediately be reported to all credit bureaus, which will drive your credit score down. When should you report rent to credit bureaus? If you pay your rent on time every month, reporting your rent to credit bu...
"use an online calculator to understand how much you'll save with various prepayments," detweiler says. make sure you have an emergency fund . it should be enough to cover three to six months of living expenses before you think about paying down your loan early. "in some cases, i...
I wouldnt worry too much about £110k mortgage. We are in a simiar financial situation to you and are making overpayments of £150pm which managed to drop us down a LTV band last year so every bit helps! Yeah I'm thinking this may be better as per prev posters advice as well ...
“This bad advice.Good advice would be saying: you are guaranteed a X% return if you pay down your debt. You CANNOT say you are guaranteed a 7% return by investing in the stock market. Just because the average is 7% does NOT mean it will go up (at all) 7% on average for X numbe...