The question of the day is should you pay off your mortgage early? In speaking with my financial adviser, he advised against paying off my mortgage early. I have been making extra payments against the principle each month in hopes of paying off my house before I retire. It just felt like the right thing to do if I could pull it off. My adviser said that I should consider that the rate on my mortgage, 6.25%, is fairly cheap money. He felt that the extra being paid should be invested. There is a good chance that it can earn as much or more than the interest I am paying on the mortgage. I could agree with that, but was not convinced that I wanted to change my strategy. Where he sold me was when he reminded me that I only have a couple of years left to use my kids as a tax deduction. Once they are out of the nest, the mortgage deduction will be about the only big deduction I will have left. I might as well take advantage of that as long as I can. Uncle Sam gets enough of my money. I don't need to give him more. As long as my wife and I maintain the discipline of saving the money that we were paying down the mortgage with, I can live with my planners suggestion. It makes good cents and sense to me...
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Showing posts with label cents. Show all posts
Showing posts with label cents. Show all posts
February 24, 2008
Does paying off your mortgage early make good cents?
Posted by
Sam
at
Sunday, February 24, 2008
2
comments
Labels: cents, interest rate, mortgage, Uncle Sam
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