Is Paying Off Your Mortgage Overrated?
Some people really look at their mortgage as a burden. Say the word mortgage and people may shudder because they know that mortgages are large in amount and stick with you for a long time. But is paying off your mortgage overrated? Some people think that it might be. Here are some of the reasons why hanging onto your mortgage may not be so bad after all.
A Long, Healthy Mortgage
- Building equity
- Low payments = more in your savings
- Your home’s value is not affected
Some people think that they will build equity by paying off their mortgage quickly. But actually you are building up equity whenever your home appreciates in value. So, paying off your mortgage is not as effective in the home value process as you might think.
If you want to pay off your mortgage quickly, then you will have very large payments. This does not allow you to save very much of your money. If you want to save some money, then a long mortgage is not all that bad. You will have lower payments; therefore you can put some money in a savings account.
Hopefully you bought this house with the idea that it will rise in value over time. One thing that will not help or hurt is your mortgage. You will not see a decline in your house’s value if you have a mortgage. So do not fear your mortgage, because your home is going to rise and fall in value regardless of it.
Don’t Fear the Mortgage!
A mortgage is not something that you need to fear. So do not panic and count off the days until the mortgage is gone. It is an annoying payment that must be made, but it is not much more than that. You can work with your mortgage in order to save some money, and put some money away for a rainy day. So is paying your mortgage off overrated? Well, you still want to pay it off! But it is probably not as urgent as you originally thought it was.
