{"id":2850,"date":"2022-08-17T16:38:33","date_gmt":"2022-08-17T21:38:33","guid":{"rendered":"https:\/\/going-places.thegeneral.com\/pay-off-mortgage-early\/"},"modified":"2025-08-27T10:04:45","modified_gmt":"2025-08-27T15:04:45","slug":"pay-off-mortgage-early","status":"publish","type":"post","link":"https:\/\/www.thegeneral.com\/going-places\/blog\/car-and-driving-basics\/pay-off-mortgage-early\/","title":{"rendered":"Should I Pay Off My Mortgage Early?"},"content":{"rendered":"\n

If you\u2019re a homeowner and you\u2019ve come into some extra money, you\u2019re probably tempted to put it towards your mortgage. <\/span>While there are <\/span><\/span>benefits to paying off your home<\/span><\/span><\/a> early<\/span>,<\/span> there may be better, more lucrative options when it comes to investing your money. <\/span>Weigh the pros and cons of paying off your mortgage early <\/span>to see if it\u2019s the right choice for you.<\/span><\/span><\/p>\n\n\n\n

What to Consider Before Paying Off Your<\/span> Mortgage<\/span><\/h2>\n\n\n\n

Use these questions to help<\/span> you decide between paying off your house and investing elsewhere.<\/span><\/p>\n\n\n\n

Could You Make More Money by Investing?<\/span><\/span><\/h3>\n\n\n\n

Paying off your home can help you save on interest payments. However, investing your money early could make up for the cost of interest with some leftovers. Investing now is like investing in the future\u2014your monetary contributions grow and accrue interest the longer they sit. <\/span> <\/span><\/p>\n\n\n\n

If the current stock market interest rate is higher than the mortgage interest rate, investing your money for ten years would yield greater results than paying off your mortgage ten years early. However, the stock market and other investments aren\u2019t fully guaranteed to pay off. If you don\u2019t get the return you\u2019re expecting, you may regret taking the risk. It all comes down to personal preference!<\/span> <\/span><\/p>\n\n\n\n

H<\/span>ow Will You Use <\/span>Your Extra Money?<\/span><\/h3>\n\n\n\n

Paying off your mortgage early <\/span>will put more money in your monthly budget. If you trust yourself to use the extra money wisely, then paying off <\/span>your<\/span> mortgage<\/span> and investing your<\/span> new<\/span> monthly<\/span> cashflow<\/span> may be a wise <\/span>decision<\/span>. However, if you\u2019re <\/span>an impulsive spender<\/span>, <\/span>making monthly payments might be a better way to keep yourself accountable.<\/span><\/span><\/p>\n\n\n\n

Do You Have <\/span>Any Other Outstanding Debts<\/span>?<\/span><\/h3>\n\n\n\n

Experts recommend paying off your hig<\/span>h<\/span>-interest <\/span>loans<\/span> b<\/span>efore your low-interest ones<\/span>. If you have leftover student or credit card debt, you may want to<\/span> put those to rest<\/span> (and put an end to those reminder emails!)<\/span> before your mortgage<\/span>. <\/span>Just don\u2019t overspend<\/span> in one area and<\/span> risk losing <\/span>your<\/span> home by defaulting on your <\/span>mortgage<\/span>. <\/span><\/span> <\/span><\/p>\n\n\n\n

Will All Your Cash <\/span>Go<\/span> Towards Your Mortgage?<\/span><\/h3>\n\n\n\n

If you decide to prioritize your mortgage,<\/span> don\u2019t deplete to<\/span>o<\/span> many of your liquid assets, <\/span>or assets <\/span>you<\/span> can<\/span> quickly exchange for cash. Your home <\/span>is a non-liquid asset,<\/span> as it could ta<\/span>k<\/span>e months to years for it to sell. Without liquid assets, you may run into financial trouble <\/span>if there\u2019s an emergency or<\/span> unprecedented <\/span>event. <\/span>Before paying off your mortgage, <\/span>experts<\/span> recommend <\/span>creating and <\/span>maintaining an emergency fund with assets<\/span>, such as stocks, bonds, and <\/span>more<\/span>, <\/span>that you can liquidate when you\u2019re in a bind. <\/span><\/span><\/p>\n\n\n\n

Does Paying Off Your Mortgage Early Fit into Your Retirement Plan?<\/span><\/span><\/h3>\n\n\n\n

If you plan on staying in<\/span> your <\/span>current <\/span>home<\/span> after you retire<\/span>, you may want <\/span>to <\/span>pay it off <\/span>now<\/span> instead of post-retirement<\/span>. However, if <\/span><\/span>retirement<\/span><\/span><\/a> feels <\/span>far<\/span> away and you <\/span>don\u2019t have many assets<\/span>, <\/span>consider investing instead. <\/span><\/span><\/p>\n\n\n\n

The <\/span>Pros of Paying Off Your Mortgage Early<\/span><\/h2>\n\n\n\n

There are multiple benefits to paying off your mortgage early, including: <\/span> <\/span><\/p>\n\n\n\n