Coco, Early & Associates

Tips for Paying Your Mortgage Off Early

by MLB Real Estate Group 03/15/2020

Image by Nattanan Kanchanaprat from Pixabay

Owning a home can be an amazing experience. But interest from your mortgage accumulates over time, leaving you to seemingly pay an arm and a leg to finance your home. But while you may think that paying off your mortgage early is a great idea, that isn’t always the case.

You May Have Other Debt

Paying off your mortgage early can save you on interest costs, but you more than likely have other debt to deal with. If you have other debts — like car loans, student loans or credit card debt — then these should be paid off first. Try to focus on your debts with higher interest rates; these tend to be associated with credit cards. After you’ve paid those debts off, then moving on to pay off your mortgage could be a good choice.

You Don’t Want to Go Broke

Paying off your mortgage may sound great and all, but you must consider all of your expenses, including possible emergencies. Saving on interest is very tempting, but it shouldn’t come at the expense of your emergency fund. You never know when something serious will happen, so do your best to set aside some cash. If you have hefty savings and all of your expenses are accounted for every month, then you can move on to paying off your mortgage early.

Consider Your Future

Many people try to pay as much as they can towards their mortgage, only to find out that they used up all of their money. While they have some big expenses and big life changes that cost money, now they have to save up in order to cover those costs. That being said, it’s best to think about your future before paying more towards your mortgage. Are you planning on having kids? Thinking of going back to school? With how frequent life changes, you never know when you could use money down the road. While it might seem like a great plan to throw money at your mortgage payment, think about your life goals and how your finances fit in that equation.

It Can Be Beneficial

Although we’ve made some points above that suggest that you shouldn’t pay off your mortgage early, it can still be very beneficial to do so. Let’s say your household is doing very well with finances and money is pouring in quickly. If your other debts and finances are taken care of, then paying off your mortgage early can help you save on interest; the larger amount you pay, the more you’ll save on interest. However, this can be a tough choice. Be sure to consider the points mentioned above before paying this loan off early.

About the Author
Author

MLB Real Estate Group

Mary Lou Buckley

A full-time Realtor © for 25 years, MaryLou has transacted business from raw land sales to luxury homes in both New Hampshire and Massachusetts. She prides herself in having a diversified background, and great local knowledge of the southern New Hampshire and northeast Massachusetts markets. A prior product manager in the electronics industry, MaryLou takes pride in her marketing knowledge and skills.  

Her hard work and dedication to each client has resulted in quality relationships with buyers and sellers as well as consistent leadership awards. Her commitment to the industry in general has been demonstrated by her service on the Granite State South Board of Realtors Board of directors, the Granite State South Board of Realtors Ethics Committee, as well as membership in the New Hampshire Association of Realtors, Massachusetts Association of Realtors, Northern New England Real Estate Network (NH Multiple Listing) and Massachusetts Property Information Network (MA Multiple Listing).

She is a consistent multi-million dollar producer who credits her success with the repeat referral business from her past and present clients. They have helped her become a highly respected and recognized Realtor © within the community.

A resident of southern New Hampshire for 27 years, MaryLou lives in Atkinson with her husband, Michael.

Amy Wholley

New to the industry and eager to help you with your needs, Amy Wholley is a licensed Realtor © in New Hampshire and Massachusetts. With a passion for service in the southern NH area, Amy is ready to help with your home buying and selling needs. As a proud member of the Coco, Early & Associates family and an active member of the Realtor © association, Amy carries the values of hard work, integrity, and outstanding client service into everything she does.

When Amy is not making home ownership dreams come true for her clients, she enjoys spending time with her young family and going to the beach to soak up the sunshine. Originally from southern Maine, Amy now lives in Pelham, NH with husband, Mark and two sons, Liam and Finn.