Buying a home is a huge accomplishment, and paying off the mortgage of your home, in its entirety, is also a huge accomplishment and one that should be celebrated. However, there are a number of things you should be aware of before you pay off your mortgage. Whether you’re not sure if paying it off quicker is beneficial for you, or you’re not sure how long you should spend paying it off, it all depends on you and the individual situation you are in. Here are three things you must know about paying off your mortgage.
Know The Process
No matter who you obtained your loan from, the process for when you pay it off is the same. Once you have paid off your mortgage in full, you will need to get the proper documentation. Before you send in your final check, you should contact your personal lender to get a payoff statement. Some minor details will be dependent upon how your lender works, but when its all said and done, you will have the original cancelled note and deed of trust from your lender.
Is Paying Your Mortgage Off Sooner Right For You?
This specific question is dependent on where you personally are, financially. In some cases, saving your money or putting it towards something important like education might be the better thing to do instead of paying off your mortgage right away. Putting that money towards your education right now could ultimately set you up to make more money and pay your mortgage off in a shorter amount of time than you thought. This is always a subjective thing, so when you’re figuring out where your money would be going if it wasn’t going towards your mortgage, you’ll have your answer.
Are You Carrying Other Debt?
If you’re carrying other types of debt, like credit card or car loans, those types of consumer loans should be paid off first. It is more than likely that your credit card interest rate is higher than your mortgage interest rate, so taking care of that first proves you are more financially responsible and it will save you money in the long run. Ultimately, you want to work on paying off all of your consumer loan debt before worrying about paying off your mortgage in its entirety.
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