Why Payoff Your Mortgage Early?
October 29, 2009 by Customer Care
Why Payoff Your Mortgage Early?, by Des Moines Real Estate Experts RE/MAX Real Estate Concepts
An early mortgage payoff is a must for every homeowner. Even if you are not disciplined, you too can pay off your mortgage years before it comes due. Homeowners who have discipline, but lack the knowledge needed to pay off their mortgage early, can benefit from similar financial planning know how.
Some mortgage lenders will set up a special repayment plan for a fee. These plans can be a biweekly repayment structure, or an extra payment. Although it is best to work out a repayment option that does not require you to pay an additional fee, if that is the only way you can make the payment – do it! Consider what the fee will cost against the amount of money you will save over the life of the loan.
It is possible to pay off a 30-year mortgage in 20-years or less by making extra payments and/or more frequent payments. Your mortgage is a structured repayment plan. Any principal paid over the calculated amount will reduce your interest debt. Over time this translates into satisfying the mortgage debt years before it is due to be paid off.
Just imagine what you could do with the extra money you will have each month once your mortgage is paid off! Perhaps you could retire early.
When you pay extra principal on your mortgage you build equity in your home faster. Many people in the Des Moines area use this extra equity to upgrade to a larger home. Yet other financially savvy people use the extra equity to purchase a second Des Moines area home. This becomes an income property for them. They are well on their way to building wealth through real estate.
There is a lot of free information available to you about buying, selling or investing in Des Moines real estate. For complete information about the Des Moines real estate market including current homes for sale, property values and more please visit the most complete website online dedicated to everything Des Moines real estate at Real Estate with RE/MAX. Please feel free to contact us with any of your real estate or mortgage related questions and we will be more than glad to answer your questions. Call us at 1-800-708-5890 or email us at dsm@realestateconcepts.net.
Filed under Des Moines Real Estate Blog
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