Thinking about paying off your mortgage now? Consider this before making your final decision.
When you compare what your home costs to what you will end up paying for it by the time you finish paying off your mortgage, the difference can be staggering. This may lead you to consider paying off your mortgage now rather than later. However, before you jump into such a major financial decision, here are some of the things you should consider.
From a purely mathematical standpoint, paying off your mortgage early is not ideal, especially if you have recently refinanced. This is because federal interest rates are currently at a historic low, meaning that your mortgage is likely one of the cheapest loans you will ever take out. Logically, if you continued to pay your mortgage and instead invested the money you would have used to pay it off, this would likely result in greater monetary returns.
However, if you look at your mortgage from a more personal standpoint, there are several advantages to mortgage freedom. For instance, paying off your mortgage now would give you the peace of mind that comes from knowing that you own your home 100%. Additionally, when you do not have to make your regular mortgage payments, your cash flow will increase substantially. Finally, if you were to get laid off, have a serious medical emergency, or experience another life change that affected your finances, you would not have to worry about the added stress of making your mortgage payments and potentially losing your home.
Ultimately, deciding what to do with your mortgage is a personal decision. Whatever you decide, it’s important that you have the right homeowners insurance to protect your home and your belongings. To find the best policies to meet your needs, contact the experts at Scavone Insurance in White Plains, New York. Our dedicated team is ready to assist you with all your coverage needs today.