The burning of the mortgage is a party that everyone once hoped to celebrate. In fact, it’s something that many people do as often as they can. Paying off a home is a big deal and it’s one of the biggest debts you will ever rid yourself of paying. However, a home is an investment and there are some who believe that having a mortgage is not a bad thing. They’d rather put that money into savings or retirement. See; having money in the bank means you will earn interest. Paying off the mortgage does not provide you with monthly or year interest and it removes the tax deduction you get from having a mortgage. That means some people would rather continue making that monthly payment. However, there are more benefits than not to paying off the mortgage as early as possible, even if you prefer to consider otherwise. Here are five amazing benefits of paying off your mortgage now.
No Monthly Payment
The biggest advantage to not having a mortgage anymore is the savings you will have monthly. Sure, you will have paid that money, but having nothing to mail off at the beginning of each month to cover mortgage expenses is a nice feeling.
All that Equity
You aren’t ‘losing’ money by paying off your mortgage. In fact, you have all that as equity in your home now. That means that instead of having a few thousand dollars in equity in your home, you have hundreds of thousands of dollars available at anytime.
This is going to be a different amount for everyone, but the more you pay the less you pay. You pay interest each month on the principle balance of your mortgage, which is money that goes to the bank – not your future or your anything.
The more you pay now, the less you will pay over time. This means you have more money for your own items, such as your own savings and retirement plans. This is a great way to ensure that you are more than capable of paying for your own retirement and future.
Sense of Security
The sense of security a person feels when they owe a bank nothing for their home is indescribable. Paying off your mortgage means more money in your own pocket all the time, and there is absolutely nothing more exciting in your life than that.
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