Mortgage Myth: You Should Pay Off Your Mortgage as Soon as Possible
While it may seem like common sense to pay off your mortgage as soon as you can, the reality is that it might not be the best use of your money down the line. Everyone's situation is different, so it is best to talk to a financial advisor about what will work best for you.
Video transcript
Mortgage myth: You should always pay off your mortgage as soon as possible.
It seems like common sense to pay off your mortgage as soon as possible, but the reality is it may not be the best use of your money in the long run. With today's low mortgage rates, the interest you could earn on investments may potentially be higher than the interest you pay on your mortgage over time. The interest paid on your mortgage is also potentially tax deductible. Everyone's situation is different - putting extra money into investments instead of paying down a mortgage isn't automatically the best option.
However, it's worth considering and a financial adviser can help you determine the best route to take. Contact New American Funding today.
