Should You Prepay Your Mortgage If You Have Ample Resources?
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Should You Prepay Your Mortgage If You Have Ample Resources?

Author: CA Hagy on August 6, 2012

You might think that paying off your mortgage early is always the best decision that you can make. But are there times when it might be financially feasible to hold back on paying off your mortgage earlier than scheduled.

For one thing, it is important to consider the difference between good debt and bad debt. If you are going to apply for a loan, the amount of bad debt that you have is going to negatively affect your chances of getting that loan. Credit cards and other credit accounts are considered bad loans so the more credit debt you have, the bigger risk you are to lenders. Some of the reasons why credit card debt is considered bad debt include the following:

On the other hand, mortgage debt is considered good debt for the following reasons:

Check out the best mortgage rates where you live.

So is it always best to pay off your mortgage early? Sometimes it’s simply an emotional issue. You might be willing to give up some money just to have the peace of mind of owning your home outright. But if you’d prefer to earn more over the term of your mortgage loan, it may be worth the time to crunch some numbers and see if how far you’d actually come out ahead.

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