Before you push yourself to pay off your home loan ahead of schedule, consider the downside of going this route.
When you get a mortgage, you agree to repay your loan over a certain period of time. That could be 15, 20, or 30 years -- or a different term that your mortgage lender agrees to. But you may, at some point, decide that you want to pay off your home loan early. Doing so could save you a lot of money on interest. Despite that benefit, here are a few reasons you may not want to pay off your home ahead of schedule.
1. You'll have less liquidity
Liquidity refers to how quickly you can access your money when you need to. Savings accounts are very liquid -- you can take a withdrawal from one when you want and get your money right away. Stocks are also fairly liquid -- you can sell a stock with relative ease for cash -- though they're not quite as liquid as savings accounts.
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