One of the biggest days (if not the biggest day) of a homeowner’s life would probably be the one when they get to formally claim their home as their own after making their last mortgage payment. Having said that, if you had the resources that would enable you to pay off your mortgage much sooner, would you? Or an even better question, should you?
Any homeowner will tell you that one of the things they look forward to is the moment they make their last mortgage payment and officially own their house. Still, if you do have the money to finish paying for your mortgage faster, would you take that road? To be more exact, should you?
Making the last of your monthly mortgage payments through larger payments or a lump sum may sound like a good idea now, but you need to tread carefully. The following considerations should come into play when you’re deciding what to do about your mortgage payments.
Will it make you vulnerable if an emergency financial need arises?
Have a look at the way your income is spread through all the things that you need to pay for every month. After making your other payments, you might be tempted to put what’s left of the budget towards mortgage, but you have to take into account the possibility of a crisis occurring. How will you be able to get by financially in the event that someone in the family falls ill, or if you lose your job? Create another budget and include an emergency fund, calculate how much you’ll be spending this time, and then decide if you can still afford greater mortgage payments.
Will you have trouble paying your other high-interest debts?
A fixed-rate mortgage that has a 30-year term is usually tied to a 4% interest rate, while lower rates are paid for a fixed-rate mortgage, as well as an adjustable-rate mortgage. Credit card debts, on the other hand, have interest rates of more than 10%, even more for payday loans and other similar finances. It might be better to settle these debts first instead of your mortgage because the longer you put off paying for these loans and debts, the more costs you’ll acquire.
In how many years are you retiring (if you haven’t already)?
Decide whether it would be better to use your spare money to pay off your mortgage early or if it would be better used for your retirement. If you’re almost at the age of retirement, you’ve probably had this mortgage for a long time and are only paying very little interest, which means you’re not really enjoying tax deductions anymore. If you’ve already retired, you don’t have a lot of options when it comes to purchasing a retirement plan that has tax benefits. This is a case when paying off your mortgage sooner is the way to go; there’s no way to know if, in the last few years of your mortgage, your money will increase in other investments.
Although it’s a great feeling to know that you no longer have to worry about mortgage payments on your home, if it means that you’re compromising your current finances, you might need to think twice.
Staying Safe in Your Apartment
If you’re still in the process of looking for an apartment, make security one of your priorities, and be sure to let the landlord know any safety issues you may have about his apartment. While renting a unit, don’t be a victim to anyone; always pay attention to the things that you’re doing and keep an eye out for anything and anyone shady around your apartment.
Relocating With Your Children
Taking these suggestions to heart will help make sure that they won’t dread moving away and will look forward to it instead.
A Guide to Selecting the Right Studio Apartment
In selecting a rental apartment, if you are planning to live by yourself, you can look into renting a studio-type apartment. In a studio apartment, you’ll find that the living room, the bedroom and the kitchen is combined in one open area.
