Question:

Should I pay off my mortgage early?

Answer:

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.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: