There are many points of view on a question: “Whether I should pay off my mortgage earlier or not?”. Some people argue that you don’t have to pay this loan earlier; while others claim that any kind of debt should be paid off. The mortgage is a special type of a loan because it offers comparatively low-interest rates and a quite long term. That’s why we’d like to tell you about the majority of pros and cons of paying off your mortgage earlier.
1.Do you have any other debts?
As a rule, people may have several more debts for other needs. Their interest rates, due to a comparatively short term, may be much higher. That’s why we think you should pay them off first, before thinking about the mortgage.
2.Do you have any dependants?
If your family is dependent on you financially, think of what can happen to them if you died. Do you have any savings or insurance? If you don’t, maybe it’s time to take care of this. The cost of getting insurance is quite low, but it can save your dependants in tough times.
3.Charges for overpaying?
Does your mortgage have any charges for overpaying your debt? If yes – you definitely shouldn’t hurry with this. First, you have to count well, what is a better choice for you – to pay your debt for a longer period of time or to pay some penalties for its overpayment.
Answering these and some other questions may help you find more practical and effective solution for your issue.