Should I Pay Off My Mortgage? Pros and Cons

Fiology Lesson 23: Should You Pay Off Your Mortgage?

Should you pay off your mortgage?

This lesson assumes you currently have a mortgage on a primary residence and are now asking “Should I pay off my mortgage?” You are deliberating between paying it off as soon as you can, making payments for the full term, or some hybrid between the two options.

Numbers, psychology, and behavioral finance are all part of the equation. Because you know how to make decisions that align with your values, you will make a decision that works for you at this point of your journey and you will continue to revisit and reconsider over time. That is just fine. This lesson provides you with different and justifiable perspectives to consider.

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Take Action:

  1. Visit Mortgage Payoff Calculator – Extra Payments. Familiarize yourself with the calculator by inserting your loan amount and the time duration for which you could pay off your mortgage. You will see how much a monthly additional payment would be and the interest savings for your assertiveness. During this exercise try to imagine what it would feel like to no longer have a mortgage payment and to possibly be 100% debt-free. Is that worth a few percentage points difference you may have earned if you kept the mortgage payments the same and invested additional funds in a stock market index fund?

Additional Resources:

Quote:

“Every day is a journey, and the journey itself is home.” – Matsuo Basho

David Baughier

My passion for helping others led to the curation Fiology. Help me spread the message of Financial Independence by clicking a colorful link above and sharing this post on your favorite social platform. Thank you!

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