Don’t Pay Off Your Mortgage Early. Here’s Why

Paying off your mortgage has been a monumental goal for decades now. But is it the right thing to do in the 21st century?

There is a big difference between good debt and bad debt when it comes to debt. Mortgages are considered good debts because they are fixed and typically have low interest.

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Read on to find out 7 reasons not to pay off your mortgage early.

1: You Can Get a Tax Break On The Interest

The interest you pay on your mortgage is usually tax-deductible. This deduction can amount to significant savings, especially if you are in a higher tax bracket.

2: There Is Potential for Higher Returns Elsewhere

Other investment opportunities will provide a better return than paying off your mortgage early.

3: You May Have Other Debt With a Higher Interest Rate

You may be carrying other debt with a higher interest rate than your mortgage. Pay off this debt before aggressively paying down the mortgage.

4: Inflation May Offset Savings in Interest

Inflation can offset the amount of interest saved by paying your mortgage off early. If you have a low rate on your mortgage, say 4%, and inflation is 7%, your real interest rate you’re paying is 33%.


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