Should You Pay Off Your Mortgage Early?

July 12, 2011

The decision to pay of your mortgage early is a personal choice. Here are some things to consider.

Mortgages are tricky things these days. On the one hand, if you pay off your mortgage as planned, you’re saving money that could be used for other purchases or emergencies. However, with so many houses underwater because of the economy, the idea of paying off your mortgage early while you have the chance might seem tempting.

If you continue to pay your mortgage regularly, you’re eligible for tax breaks. If you pay it all off at once, then you might not be one of these people stuck going through a short sale because you owe more on the mortgage than the house is worth.

There are positives and negatives that can be argued for both sides, but in the end the decision is personal. You could choose one option while your neighbor choose the other and both could turn out fine.

T

he Zillow blog has broken the decision of paying off your mortgage early. Some of the things to consider are any other debt you may have, if your house is already underwater and what sort of return on investment you could get if that money went elsewhere.

Read more about how to make the best decision for you here.