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Prepay Mortgage

SHOULD YOU PREPAY YOUR MORTGAGE?

QUESTION: For the past year my wife and I have been putting an additional $500 per month toward the principal on our 5.25% 30-year fixed mortgage. The psychological freedom of not having a mortgage is very appealing to us, but the argument for trying to invest the extra cash at a higher rate is compelling too. What's your take on paying off the mortgage early? - Mike, Arlington, Virginia
Ref. https://money.cnn.com/2006/06/23/pf/expert/...eymag/index.htm

Mortgage Prepay

If you can pay just one extra payment a year, that will clip something like ten to twelve years off your mortgage. I am a firm believer in paying off debt. I think that there is nothing but benefit to you for paying for your mortgage early. And it really doesn't take much extra to do it. Simply a little discipline and patients and you will see results. Always make sure that your load does not have penalties for paying off early and that your company puts your extra payments towards the principle.

Prepay Mortgage History & Civil Business Politics

You can't earn much if you have more debt than savings. The interest you might earn on that $500 a month is not necessarily helping you if you are also paying interest on your house. Right now, interest rates on regular savings are under 2%, money markets (which can lose value) and CDs are around 3.5 to 5%, while your mortgage interest is probably around 6 to 10%! Pay it off, and then invest, in my opinion. Otherwise, you are paying more in interest than you are earning.

Of course, you could gamble it all on the stock market, but I don't recommend that right now. It's heading for a fall, say some experts, and not a good time to "get in" the game. Sure, you could make a tidy profit - IF, and that's a big IF, you pick the right stock.... and if not, you could lose it all.

All in my opinion, of course.
Roz

Mortgage Prepay

Oh, I always say "Pay if off!" If you can afford it, do it! In Argentina most people do not have a mortgage because they buy their houses in cash...I know, that's why you see couples engaged for at least 10 years in order to buy a house and forget the hassle of a mortgage. Of course, because of such long relationships they end up breaking up and you can well imagine the problems of splitting that money that it was supposed to buy the house!

Mortgage Prepay

With a mortgage you have to pay the interest first before the principle thus the % you pay is deceitful and you are better to pay off as fast as you safely can. besides once paid of the amount of money you have to place in saving is huge and if things go bad you have the cheapest possible living you can. Tax and heat.

Prepay Mortgage

I would love to pay my mortgage off sooner than my contract. I am happy that I am not behind on payments. I think it is very wise to pay it off sooner if you have the means. IF not just do not get behind on payments.

Prepay Mortgage

The sooner your mortgage is paid off, the sooner you can stop the monthly payments. The interest you save is as good as interest you could have made in separate investments. If you have a 7% mortgage, every dollar you prepay is like earning 7% in the stock market. There are several ways to pre-pay. You can pay an extra mortgage payment or two a year. Just one payment a year makes a big dent. Some lenders will let you make bi-weekly payments. You pay half your mortgage every two weeks. This is like making an extra payment every year. If you want to pay off faster you can add 3-4% of your mortgage payment to the principle every month. You want to make sure your mortgage does not have penalties for early pay-off.

Prepay Mortgage Politics Business Civil & History

That is the one thing I have a hard time doing. I know that paying it off sooner will mean more money for me but I seem to have a hard time putting that extra money into my property. I am trying to get better at it and I know I will probably have it paid off before the 30 years are up.