You've got a little more money coming in now and wonder if you should make extra payments on your mortgage, or perhaps you wonder if you should cash in your investments and apply the money to your mortgage. Before making that decision, take a look at all the variables in your particular situation.
Increasing your monthly mortgage payment by even a modest amount can save thousands in interest payments and pay your mortgage off sooner. Before you start making larger payments on your mortgage be sure that you have already built up a "cushion" of some accessible funds in case of accident or illness. Having a cushion large enough to support you and meet all of your payments for three months is the minimum you should have.
It would not be wise to put all your money towards paying off your mortgage and leave yourself unprepared to weather a period of illness or unemployment. Once you do have that cushion in place then by all means pay down your mortgage.
If you are in the fortunate position of having substantial funds to invest then it may be prudent to take a look at your tax situation before making the decision to pay off your mortgage.
You also need to factor in the rate of return, safety and consistency and tax payable on your investment, before deciding which course of action is prudent for you.
We hope you have found this post useful and encourage you to please contact us with any questions, comments and all of your real estate needs.
Thanks in advance.
With our highest regard,
Wayne and Lynda Gomillion
"The Pinehurst Home Team"
"The friendship and referrals of those we serve is the foundation of our success."
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