Lewin Harrison

AACE Financial Services

  • Home
  • About
  • Resources
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
  • Blog
  • Calculator
  • Main Website
  • Apply Now
  • Contact

What Are the Advantages to Paying off Your Mortgage Early? Here Are a Few That Might Entice You

November 23, 2021 by Lewin Harrison

If you're looking into fixed term mortgages, you might be wondering whether there's any reason why you should take the full term to pay off the loan. In a lot of cases, paying off a mortgage before it comes due is a great decision. If you're considering paying off your mortgage early, you'll experience a variety of benefits – here are just a few of them.If you’re looking into fixed term mortgages, you might be wondering whether there’s any reason why you should take the full term to pay off the loan. In a lot of cases, paying off a mortgage before it comes due is a great decision. If you’re considering paying off your mortgage early, you’ll experience a variety of benefits – here are just a few of them.

You’ll Save Thousands In Interest Payments

By and large, the single biggest advantage of paying off a mortgage early is the money you’ll save in interest. The longer you take to pay off your mortgage, the more you’ll pay in interest overall. In fact, on a 30-year fixed-rate mortgage, you’ll pay as much in interest as you do in principal over the course of the loan – but if you pay off a $300,000 mortgage five years early, you’ll save $60,000 in interest charges, assuming an interest rate of 5.5 percent.

You’ll Greatly Improve Your Credit Score

A mortgage is quite a sizeable debt, and the longer it takes you to pay off your mortgage, the longer it’ll weigh down your credit score. Paying off your mortgage early will boost your credit score quite substantially, which means you’ll be able to take out loans to buy an investment property and start earning income on a second home. And with your first mortgage paid off, you’ll have a significant amount of new money coming in.

You’ll Free Up Your Cash Flow

Once you’ve paid off your mortgage, you’ll free up a great deal of monthly income – which you can invest into mutual funds, a savings account, trips around the world, or a college fund for your children. With so much extra cash available every month, you’ll be able to save, invest, and spend more freely – and that means you’ll meet your financial objectives sooner.

Paying off a mortgage earlier than expected may seem like a daunting challenge, but with discipline and a solid plan in place, it’s very possible. And best of all, paying your mortgage off early offers a number of great advantages that extend beyond just the financial. It’ll offer a variety of lifestyle advantages and give you a great deal of financial freedom.

Want to learn more about how the mortgage process works, or discover great new strategies for paying off your mortgage sooner? Contact your local mortgage professional today to schedule a consultation.

Lewin Harrison

Filed Under: Home Mortgage Tips Tagged With: Amortization, Home Mortgage Tips, Mortgages

Lewin Harrison

Lewin Harrison


Broker
AACE Financial Services
AACE Financial Services
Call (213) 908-4416
Company NMLS 1631111 • LO NMLS 644748
Dre#: 01902097


Schedule a Time With Me →

Connect with Me

Archives

Browse articles by category

Dre#: 01902097
NMLS#: 644748

Equal Housing Lender

Our Location


8549 Wilshire Blvd #718
Beverly Hills, CA 90211

Quick Links

  • California Privacy Notice
  • Privacy Policy
  • About
  • Contact Us

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in