Episode 87 - Should You Pay Off Your Mortgage Early? Pros and Cons
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Episode 87 - Should You Pay Off Your Mortgage Early? Pros and Cons
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About this listen
Summary:
In this episode, I explore the question many homeowners face: should you pay off your mortgage early? It’s tempting to be mortgage-free, but I look at both the pros and cons before jumping in.
On the pro side, paying it off brings freedom from monthly payments, saves thousands in interest, builds equity, and gives you emotional peace of mind. That feeling of truly owning your home can’t be underestimated.
But there are cons too. You could miss out on higher returns by investing your money elsewhere, especially if your mortgage rate is low. Tying up cash in your home reduces liquidity, which can hurt you in emergencies. You might also lose out on mortgage interest tax deductions and miss the chance to first pay off higher-interest debt like credit cards.
To decide, I suggest asking yourself: Do you have other high-interest debt? How far along are you in your mortgage? What are your other financial goals? And how much do you value peace of mind?
There’s no one-size-fits-all answer, but with the right strategy, you can make the choice that aligns best with your long-term goals.