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Interest rates went down this week and many people are refinancing
their home mortgages once again. When you refinance, it's important
to make decisions based on your personal and financial goals in life.
In this article, we are going to discuss the topic of paying
off your mortgage early and why you might or might not want to.
So, what about you? Where do you stand on this issue or are you as
confused as many of us? The book called "Ordinary People
Extraordinary Wealth, A New York Times best seller, by Ric Edelman
states in his findings that most of the 5000 people he surveyed with
extraordinary wealth still carry a mortgage.
While most of us have heard all our lives that it is better to pay off
our mortgage as quickly as possible, both sides make some strong
arguments for their case.
Here are a few reasons for Paying Off Your Mortgage Early:
2. You want to have more choices and options for your future and no
debt gives you this option.
3. You want to retire early. With no mortgage payment, you can save up
for retirement faster and quit sooner.
4. You want a guaranteed rate of return. Paying off your mortgage
guarantees you that savings rate. Investing in the stock market can
never guarantee you anything.
5. You don't itemize but take the standard deduction.
6. You live in Canada or another country where there are NO tax benefit
to carrying a mortgage.
7. You are disciplined enough that once you have paid off your
mortgage, you will invest the same payments into a retirement fund
until you have enough to meet your retirement needs. (Remember, with no
mortgage, your required retirement income will be greatly reduced.
2. You want to leverage your assets to help you achieve your goals
more quickly. Using someone else's money is better than using your own.
3. You are in a high tax bracket and this additional deduction lowers
your income tax bracket as well as your taxes.
4. You think you can get a better return in another investment (i.e.
stock market, real estate, rental property, etc.)
Personal Peace of Mind and Financial Freedom isn't for all. Some would
rather take risks where the rewards can be significantly greater than
playing it safe. Bottom line? We all need to decide for ourselves what
will work best for us.
©By Doris Dobkins
Looking for more ideas to get out of debt, save money and improve your finances? You need
"Get Out of Debt Now!" guaranteed to teach you the step-by secrets of frugal living and smarter use of your money!
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