Should I pay off my mortgage early?


There are different points of view as to whether one should pay off mortgage early. Basically, the younger you are the more you could afford to experiment with different investment vehicles. The older you are, the better it is to have the mortgage repaid.

Should I pay off my mortgage early, or I should keep the mortgage?

For high interest rate mortgages early prepayment yields higher level of return than any other investment.

However, though, if you have a low rate mortgage paying it off early may not be worth it. Paying down the mortgage is a zero risk investment; buying mutual funds and stock is another investment option. Investing in stock carries higher risk - losses and return can both be higher.

On a low interest rate mortgage, around 6%, it is worth finding a zero-risk investment such as savings accounts with higher return.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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