The middle class society at present cannot avoid mortgages as they constitute an important part of their expensive purchases, like, a house. A long term mortgage plan (payable over a period of 30 years) is always associated with a huge amount of interest, which may sometimes, even surpass the original principal loan amount. Hence, paying off mortgage early is always advisable and recommended for a better financial condition. The following article would deal with the numerous advantages of an early pay off of a mortgage.
* Relief from financial stress - The regular monthly payment not only imparts a financial stress but also a mental stress which is relieved as soon as the mortgage is paid off. The sense of being relieved from the financial obligation provides an enormous mental peace to the borrower.
* Marked decrease in your living cost - Early paying off of your mortgage saves you from the monthly mortgage payments and as a result, reduces your total monthly cost of living.
* Less tension regarding job loss - At present, the current market is prone to job losses and the middle-class workers are the worst affected. An early pay off always reduces the tension of regular monthly payments and thereby reduces the job loss tension too.
* Saves a huge amount of interest - A typical long-term mortgage plan always involves a huge amount of interest throughout the span of 25-30 years of the amortization schedule. So, paying off early definitely helps to save you a lump sum amount which would have been paid by you as interest.
* Saving the future earnings - You would secure all your future earnings by early paying off of mortgage. There is no need for the mortgage payment anymore and hence, all of your earnings are safe and secure, just for your use.
* Improvement in personal credit score - Early pay off helps you to become free from a big financial liability and thereby, improving your credit score and enabling you to also avail a credit expansion.
* Increase in the equity - Your home equity would be accessible to you as soon as you pay off your home mortgage.
* Once you pay off your mortgage earlier you get faster access to your home equity.
Finally, it is always the personal choice of the borrower to pay off the mortgage early or not. But, we may conclude that early paying off is always advisable for a better financial state of affairs.
* Relief from financial stress - The regular monthly payment not only imparts a financial stress but also a mental stress which is relieved as soon as the mortgage is paid off. The sense of being relieved from the financial obligation provides an enormous mental peace to the borrower.
* Marked decrease in your living cost - Early paying off of your mortgage saves you from the monthly mortgage payments and as a result, reduces your total monthly cost of living.
* Less tension regarding job loss - At present, the current market is prone to job losses and the middle-class workers are the worst affected. An early pay off always reduces the tension of regular monthly payments and thereby reduces the job loss tension too.
* Saves a huge amount of interest - A typical long-term mortgage plan always involves a huge amount of interest throughout the span of 25-30 years of the amortization schedule. So, paying off early definitely helps to save you a lump sum amount which would have been paid by you as interest.
* Saving the future earnings - You would secure all your future earnings by early paying off of mortgage. There is no need for the mortgage payment anymore and hence, all of your earnings are safe and secure, just for your use.
* Improvement in personal credit score - Early pay off helps you to become free from a big financial liability and thereby, improving your credit score and enabling you to also avail a credit expansion.
* Increase in the equity - Your home equity would be accessible to you as soon as you pay off your home mortgage.
* Once you pay off your mortgage earlier you get faster access to your home equity.
Finally, it is always the personal choice of the borrower to pay off the mortgage early or not. But, we may conclude that early paying off is always advisable for a better financial state of affairs.
About the Author:
If you have been wondering about how to pay off mortgage the fastest way, then you need to visit samia's website for a free consultation about early mortgage pay off programs available to you.