Posted on: 19th Apr, 2006 07:34 am
Hi,
We want to pay off our mortgage completely but have heard that it's not a good idea because of not having anything to right off on taxes. We would love not to have to make anymore payments. We have two teenagers who will be going to college and would like to use the our money that would be going to the house to go towards college. What's your opinion? Thanks
We want to pay off our mortgage completely but have heard that it's not a good idea because of not having anything to right off on taxes. We would love not to have to make anymore payments. We have two teenagers who will be going to college and would like to use the our money that would be going to the house to go towards college. What's your opinion? Thanks
Hi, Cchris
In you case there may be few options you should know. Paying off the mortgage may put you in paying the prepayment penalty. Though it varies from lender to lender whether they will charge it or not.
You should also keep some money for paying off the taxes. If you have sufficient funds, then make provisions to make the payments regularly along with the education costs of your children.
Thanks
In you case there may be few options you should know. Paying off the mortgage may put you in paying the prepayment penalty. Though it varies from lender to lender whether they will charge it or not.
You should also keep some money for paying off the taxes. If you have sufficient funds, then make provisions to make the payments regularly along with the education costs of your children.
Thanks
Cchris,
See, paying off your mortgage and coming out free of any debts is always good if you can afford. Paying off your mortgage early can save thousands of dollars in interest if you consider it for the long run.
But you need to be aware of the pre-payment penalty also if there is any on your mortgage. Not all mortgages have pre-payment penalty.
If you can't afford at this point of time then, you can continue with your normal payment mode towards the mortgage and meet the other expenses that you have.
I shall advise you to check if you can plan a budget to meet the expenses and if you can make some extra payments towards your mortgage on a regular basis after that. You must take a note of the difference on how much you are going to save by writing off taxes and how much you are going to save by saving on paying interest in the longer term towards your mortgage.
But again, it depends on your current financial situation and requirements and you have to decide taking all the aspects into account.
James
See, paying off your mortgage and coming out free of any debts is always good if you can afford. Paying off your mortgage early can save thousands of dollars in interest if you consider it for the long run.
But you need to be aware of the pre-payment penalty also if there is any on your mortgage. Not all mortgages have pre-payment penalty.
If you can't afford at this point of time then, you can continue with your normal payment mode towards the mortgage and meet the other expenses that you have.
I shall advise you to check if you can plan a budget to meet the expenses and if you can make some extra payments towards your mortgage on a regular basis after that. You must take a note of the difference on how much you are going to save by writing off taxes and how much you are going to save by saving on paying interest in the longer term towards your mortgage.
But again, it depends on your current financial situation and requirements and you have to decide taking all the aspects into account.
James