Wednesday, 24 February 2016
If you've come into a windfall, or otherwise find extra money on hand, you may be tempted to pay off your mortgage before it's due.
This can be a great financial move for many people—but there can be significant downsides, too. Like most money decisions, whether or not to close out your home loan early is an individual choice, with many pros and cons.
If you find yourself weighing the pluses and minuses of early, lump-sum mortgage retirement, you may consider a happy medium: Gradual early payoff while investing your newfound funds in other assets. You can pay off your mortgage gradually by either refinancing for a shorter term (like shaving off years by refinancing a 30-year mortgage to a 10- or 15-year loan) or paying extra principal each month in your monthly payments to shorten the life of the loan.
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