Should I pay off mortgage early?

5 Replies

Hi all,

With the interest rate so low for the past few years, is it a good idea to pay off the mortgages early?  What are your thoughts on this?

Thanks for any insights!

@Xin Z.  depends on your goals and appetite for risk. Low rates make it attractive to borrow money, but owning real estate free and clear is a great accomplishment. Of course cash in hand makes it a lot easier to buy more property. 

Medium pinefinancialgrouplogoTravis Sperr, Pine Financial Group | [email protected] | 303‑835‑4445 | http://www.pinefinancialgroup.com

What's your interest rate? Investing the available cash on the markets should bring in a 7%-10% (conservative) or more if you take risks.  

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Real Estate Agent Fairfax

You don't give enough information on your goals, what else you would do with the money, etc.  For me, my money can work much harder than saving me 5% interest.

As has been detailed in the above responses, there are 2 answers:

1) Financially, no it does not make sense to pay it off. Just the reverse. With historically low interest rates, you should be borrowing more and locking in long term.

2) Life- style wise, maybe. It's hard to "lose" a house that is owned free and clear.

Where are you in you life and your investing goals? Only you can decide if #1 or #2 makes more sense for you.

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