Benefits of Paying off a Mortgage Early

The nonprofit organization hosts workshops to increase financial literacy among the general public and dispenses sound financial advice for achieving common financial goals, such as paying off large debts and mortgages.

Mortgages are often a household’s largest debt and can take decades to pay off. However, if there are no other large outstanding debts, it may be prudent for homeowners to focus on paying off their mortgage early. There are several strategies that homeowners can use to pay off their home more quickly.

Many tactics can be applied without changing the terms of the loan. For example, homeowners can commit to diverting all future income increases and tax refunds to making additional mortgage payments. Mortgage holders can also add a bit extra to their normal monthly payments toward the principal or make payments more frequently.

Homeowners interested in refinancing can convert from a 30-year to a 20 or 15-year loan period, which typically results in higher payments with a lower interest rate. Another strategy is to switch from monthly to bi-monthly payments, which can result in significant interest savings over the life of the loan.

Author

Robert Ryerson

Although Robert M. Ryerson completed all the necessary requirements to earn bachelor of arts degrees in both English and economics at Rutgers University, college policy at the time prohibited the issuance of dual degrees. As a result, he graduated from Rutgers with a single bachelor of arts in economics before finding employment as a stockbroker with Shearson Lehman Brothers in New York City. Robert M. Ryerson has since established himself as a respected estate administrator and legacy planner. In addition to his degree from Rutgers, Mr. Ryerson holds professional designations as both a Certified Financial Planner professional and a Certified Identity Theft Risk Management Specialist. He has shared his knowledge on the subject of identity theft as the author of the book What’s The Deal With Identity Theft?: A Plain-English Look at Our Fastest Growing Crime. He has also covered identity theft issues directly for students as the instructor of the adult education course Understanding Identity Theft: Our Fastest Growing Crime.

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