![]() But if you’re in good shape on all of the above, then get out your pro/con list: It’s time to compare paying off your mortgage early or putting extra money in savings. If you answered “no” to any of these questions, consider taking care of those priorities first. Have you saved an emergency fund of 3 to 6 months’ worth of critical expenses?Īre you debt-free? Other debts you may have include student loans, car loans, medical payments and credit card balances.Īre you putting 10-15% 2 of your income toward retirement? savings question, review other financial goals: Are you taking care of other financial priorities?īefore considering the mortgage vs. ![]() ![]() Here are a few questions to ask as you choose between paying off a mortgage early or piling up extra savings. The best choice depends on your financial situation and your money goals. However, the good news is that both options make financial sense. The decision to either prepay your mortgage or build up your savings isn’t easy either. It means you have some money left over each month after paying bills, and that’s no easy feat. If you’re asking this question, that’s a sign that you’re in a great financial position. It’s one of the most hotly contested debates of the financial world: Should you pay off your mortgage early or save your extra cash? The best option really depends on your financial situation and your money goals. So if you have some extra money, what’s the best thing to do with it? Should you try to pay off your mortgage early and get rid of that debt? Or are you better off continuing to pay your mortgage and putting any extra cash in savings? And over that time, you might end up wishing you had extra money for anything from fixing your car’s transmission (oh, no!) to a great business opportunity (heck, yes!). After all, you could be making monthly mortgage payments for up to 30 years. 1Ī mortgage may be the biggest debt you ever take on. homeowners never had a mortgage or have paid it off. If you have a mortgage, you’re not alone: Right now, most Americans who own a home still have a mortgage (and many are probably anxious about those payments as well). However, you may also have felt a bit anxious about the “paying off the mortgage” part of your new housing adventure. When you closed on your home mortgage, you may have felt an unmistakable thrill as those house keys finally landed in your hand.
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