
Saving up extra money to pay off your mortgage early can put financial pressure on you and your family; even so, the effort is often more than worth the temporary sacrifices you will have to make. Following are three reasons why you may want to seriously consider paying your home loan off as quickly as possible.
Interest Savings
Interest payments on a long-term mortgage loan can add tens of even hundreds of thousands of dollars to your home’s price tag. Generally speaking, the more expensive the home is, the more interest you will need to pay on your loan. Paying off your loan early will help you save large sums of money that you can then use for other purposes.
Peace of Mind
Owning your own house outright gives you peace of mind that you’ll always have a place to call home. It’s a far safer investment than putting money in stocks, bonds, mutual funds and other paper investments. Furthermore, your home, unlike other costly possessions such as a boat, RV or luxury car, stands a good chance of appreciating in value.
Financial Freedom
Buying a home is certainly a large expense but it’s not the only significant expense you need to budget for. If you have kids, you’ll want to save up money for college and university. If you plan on enjoying your golden years to the full, saving money for retirement is a must. Those who have a medical condition will want to set aside extra money for medical bills. Paying off your home early gives you freedom to use the money that you would have spent on your mortgage for other things.
Talk with your mortgage lender in Nashville if you are considering paying off your mortgage early, as in some cases there are penalty fees for making early payments. If you are buying a home with a long-term mortgage loan but are considering making early payments at some point in the future, choose a fixed rate loan as loans with an adjustable interest rate frequently have pre-payment penalties. The MIG mortgage company in Nashville can help you understand the terms and conditions of your mortgage loan contract so you can pay off your home loan in the way that best suits your financial needs.