Posted By Whitney Shoffner @ Apr 6th 2017 11:01am In:
Southwest Missouri Realty
Should I Pay Extra on My Mortgage?
Paying off your mortgage early may sound like a great idea, but it's not always the wisest use of your money. Experts at Interest.com say you should consider these four things before paying extra on your loan.
1) Pay off high-interest credit card debt.
Continuing to pay high interest on credit cards just costs you money. Plus, while mortgage interest is usually tax deductible,
credit card interest isn't! So you will want to get rid of it first!
2) Maximize matching retirement fund contributions.
IF your employer matches on contributions to your 401(k), make sure you are putting in enough to get the maximum amount matched.
Otherwise you are just turning down FREE money!
3) Build up your emergency fund.
You need a financial cushion in case you lose your job or can't work due to illness. Save up three to six months of living expenses in a savings or a money market account.
You won't risk losing your home or paying your utility bill in case of an emergency.
4) Do the math.
Finally, do the math to see how much you could make by investing the money you'd put toward extra house payments into long-term
options like stocks. If it's more than you'd save by paying down the mortgage, invest the money instead.
Consult your local Financial Advisor for all applicable information and suggestions in building wealth. When you have a question about Real Estate or buying investment
properties, please call me! I would be glad to help!!
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