Question:

How about paying off your mortgage loan early?

Answer:

Many homeowners consider paying off their mortgage loan early. Why would they do that and should I pay off my mortgage loan early?

There are borrowers who dream of living a mortgage-free life and this is often the single and most cherished reason for many to repay in full their mortgage loan. Sometimes clinging to mortgage debt reduces it especially in years of high inflation. Many homeowners, however, simply want to get rid of their home loan even if it doesn't make sense from a financial point of view.

How effective is paying off your mortgage loan early?

Well, the effect is pretty big. Consider a $100,000 loan amount at 7% for 30 years. Your regular monthly payment of principal and interest is $665.30. If you prepay $50 monthly you are cutting your loan amortization term with 5 years and 9 months and saving over $30K in interest.

As you can see, paying off your mortgage loan early is worth considering.

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