HOW PAYING OFF YOUR MORTGAGE CAN RESULT TOWARDS A BETTER REQUIREMENT
Being a creditor, there is always the urge for you to meet requirements, rules, and guidelines for taking your next loan. One of the things that could boost your creditability is your ability to pay off your mortgage. The question is how can paying off your mortgage be of consequence towards a better requirement. There […]
Being a creditor, there is always the urge for you to meet requirements, rules, and guidelines for taking your next loan. One of the things that could boost your creditability is your ability to pay off your mortgage.
The question is how can paying off your mortgage be of consequence towards a better requirement.
There are many ways in which paying off your mortgage can help meet a better requirement, so, here they are.
FLEXIBILITY IN YOUR MONTHLY BUDGET
Being able to pay off your mortgage means you will have that extra breathing space, especially in your monthly budget. Before your mortgage is fully paid, there will be difficulties in using your money for other things. With your debt paid, you will have that extra cash to do something else in your home. Household expenses will be paid comfortably.
The bottom line; paying off your mortgage make you have control over your money
SAVE YOU COSTS OF INTEREST
Once you can pay off your mortgage before the 15 – 39 period or term, it will save you (the homeowner) costs from interest. As a homeowner with high-interest rates that is close to paying off your mortgage, you may not benefit from refinancing, and that’s because of the expensive fees associated with it.
On the other hand, once the mortgage is paid off, you will be saving for your self-interest costs and if you want you can divert the fund into doing something else.
The bottom line; Pay off your mortgage so you can avoid being charged for interest
We all tend to get it wrong, especially those approaching retirement. They believe in this notion that they should save money as well as pay off debts, they think paying a certain amount as contributions would be more profitable than paying off mortgages. Well, that’s wrong because as time goes by, you will see that with payment made on mortgages, you get tax reduction on interest. That way you get more money to contribute.
The bottom line; Pay off your mortgage so you avoid the tax that will be charged on interest
YOU WILL BE SPENDING LESS
Not being able to differentiate between wants and needs could lead to mismanaging of your income. Those who make extra payments to pay off their mortgages will ultimately increase their potential for a comfortable retirement and that’s because they’ve spent less during those periods when they were working.
The bottom line; Paying off your mortgage makes you spend less than accumulating the cost.
YOU GET PROTECTION AGAINST A VERY UNSTABLE HOUSING MARKET
What troubles many citizens nowadays iswhether they will be able to keep up with their mortgage in this very unstable market. It’s always like they’ve got a mountain right in front of them.
The bottom line; One of the thing that paying off your homeowners will do is that it will protect you from all of the instability that rears his ugly head in the industry.
YOU GET PROFITS FROM DOWNSIZING
At the end of it all, older homeowners choose to downsize their home because they feel it would be too big to live in, become hard to navigate, or even tidy up. Downsizing when retiring is a common act because those who do it tend to gain profit from their sale. They then use a smaller portion of the profit to acquire a smaller home and divert the rest towards their retirement.
The bottom line; Paying off your mortgage places you in the nest position to have control over the money you receive when you decide to downsize
GIVES YOU THE FINANCIAL FREEDOM YOU SEEK
What comes next after paying off your mortgage? Being able to pay off your mortgage will give you that freedom you seek, freedom of investing in other ventures. It is always difficult to invest in another business when you have your mortgage plan in front of you. So, if it has been your dream to invest in real estate, travel out, you can do these things with the profit from your ventures.
The bottom line; paying off mortgage gives you the freedom to use your money for other things
At the end of it all, paying off your mortgage is something every person would love to do, and that is because it keeps you above the invisible line of security that comes from having a home and not being able to pay the mortgage payments.