Is the thought of a 30 to 40-year mortgage dragging you down? Cut the massive debt ball and chain by paying off your house as fast as possible. Here are 12 reasons why it makes perfect sense:
12. Peace of mind
For most people a mortgage is their biggest debt. Pay it off early and you’ll eliminate a huge chunk of your money worries.
11. Reduce job loss fears
The thought of losing a job sends shivers down the spine. People are scared witless about having their home repossessed if they can’t keep up with repayments. With a fully paid off mortgage the prospect of job loss isn’t as scary.
10. Retire early
With no more mortgage payments you can get out of the rat race sooner.
9. Slash costs
Extra money channeled into a mortgage saves thousands of dollars in interest payments.
8. Enjoy your home even more
Knowing the house is completely yours creates a wonderful sense of relief.
7. Increase cash flow
Nothing eats into a paycheck like a mortgage payment. Paying off a house early creates more monthly disposable income.
6. Give savings a rocket-sized boost
The extra cash can be invested in the stock market, savings schemes or even a vacation home.
5. Secure the best deals on money products
Mortgage-free homeowners are less likely to borrow money. To entice these customers, financial institutions will offer the most competitive credit card deals and lower insurance rates.
4. Enjoy more freedom
With only a few small monthly bills you are a freer agent, less tied down to a job you don’t like. You can hand in your notice at any time and look for something you really love.
3. Better investment
All things being equal, money invested in a property yields a far greater return than having cash sitting in a savings account.
2. Enhanced equity
The more you pay off your house the more equity you build which may be needed in emergencies.
1. Better retirement
Paying off a mortgage in retirement can be tough on a fixed pension. Being mortgage-free makes living expenses affordable, plus you’re leaving a debt-free property to your children.