Question:

Should you pay off your home early if you have the cash?

Answer:

Sometimes you get a lump sum of cash - from inheritance, or property sale, or stronger season, etc. Should you pay off your home early then, or what?

Paying off home early provides emotional comfort.

Knowing that you own your home free of debt is the basic reason why many people would do exactly this - pay off their house loan, if they ever lay their hands on a lump sum of cash. Especially if they are seniors and rely on the equity of the home as a resource for their later retirement years.

Early home loan prepayment frees cash to invest.

Paying off home with a lump sum before the loan term is over means that you will no longer have mortgage payments to take care of and you could invest this money somewhere else. However, isn't it more reasonable to invest the bag of cash especially if your loan is low rate? One should use financial advice from a professional if they are not used to managing their own finances.

On the whole, paying off mortgage shouldn't result in missing on investment opportunities.

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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