If you’ve received cash or if you have saved a large sum of money over the years, it may be tempting to pay off the mortgage loan early.
Paying off the mortgage early is an option, although it is important to look at your financial situation, the loan’s interest rate, and how close you are to retirement.
Although paying off a mortgage has benefits, I would recommend speaking to a reliable financial planner and consider other factors such as the tax-deductibility of mortgage interest and low loan rates.
Investing that money could potentially generate higher returns than the loan’s interest cost. Please keep in mind that investments also come with the risk of losses. Look at your options and see what is best for you!
It is possible that you could save thousands of dollars if you choose to invest rather than pay down your mortgage first. This could be lifechanging for you. Reach out to me today and we can discuss this further.
Great tools to see where your investments could take you if you are not in a rush to pay down your mortgage!
Mortgage Payment (simple interest) vs. Investments (compounding interest)