When it comes to mortgages, this may be the most asked question there is when it comes to savings, taxes and retirement - "Should I pay off my mortgage early?"
Your home is not an asset like a car where you pay a certain amount, it depreciates, you pay it off and you’re done. It acts more like an investment that you’ve borrowed money to invest in. It not only has intrinsic value, it (hopefully, eventually) will go up in value, and sometimes, as we’re experiencing, it goes down in value.
It also has value beyond money—you live in it. It allows you to be comfortable while you work and live your life. It’s also vulnerable to wild market swings, as we’ve been experiencing over the past year or so, and the national average return on home value is incredibly low for an investment—somewhere between 3 and 5 percent.
Rather than prepaying your mortgage, your money will serve you better by paying off credit card debt, saving up an emergency fund that will help you avoid losing your home should you lose your job, or growing in a well-diversified retirement portfolio which should earn you a conservative average of 8 percent over at least 20 years.
Prepaying your mortgage may make you feel better, but not prepaying your mortgage is more likely to enable you to live better.
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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighboring Queens County properties.
We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.
We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com.
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