Advantages of paying off the mortgage on your house early

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Imagine how sending off that final check to pay off your mortgage would bring on a feeling of financial freedom. Once this is complete, you are totally released from the long-term obligation of mortgage payments.

Taking the steps to pay off your house earlier than the loan terms stipulate comes with several advantages. These benefits include fiscal freedom, higher equity, and the ability to invest more money into your home.

Paying off your mortgage also means you'll out and out own a significant asset once the loan is paid off. While the housing market rises and dips on a regular basis, for the long haul, real estate typically retains its value, making it a solid investment. Why wouldn't anyone want to pay off their house and get rid of those significant mortgage payments if it is feasibly possible?

Many people feel maintaining a mortgage is good to build credit. This may have been true in days of yesteryear. However, nowadays there are so many other ways to build strong credit other than by making large, long-term large interest payments that come with a home loan. Mortgage interest payments are some of the largest debts you'll ever carry and it makes good financial sense to reduce this expenditure when practicable. 

Financial freedom 

The primary reason to pay off your house is to save money! All that money going towards interest and principal payments (more money goes towards interest in the earlier years) can be money you can invest, use for other expenditures or save for a rainy day.  

When you pay off your house, you own your home free and clear. If something happens where you can't make your home payments, the bank can't foreclose on you and take your home away. Of course, you'll still have to pay for maintenance, upkeep and taxes, but without that hefty mortgage payment hanging over your head, you'll have more money in your own bank account to take care of these expenditures.

While it is true you can deduct the interest on your home with your annual taxes, theoretically, you'd get more money back by eliminating or decreasing house interest payments which would decrease your tax return, but significantly increase your savings overall and put more money back in your pocket. 

Investing in your home

Once you free yourself from the responsibility of making a monthly house payment you'll have money to use to pay for other expenditures. Think about all those essential projects you've been putting off because you couldn't really afford to do. You can also focus your spending on other desired home improvement and decorative projects. By investing money back into your home, you can live more comfortably, know repairs are up to date and be satisfied your home is looking the way you want; all of which increases the value of your home.

Other financial investments

After your house is paid off you may find you now have the ability to make financial investments which you could never afford to do before. You'll be able to place money, which would have been going into the bank's profits, back into your own pockets.

As you build your own financial future, you can either acquire additional properties or investments to increase your assets. Interest payments on a mortgage are a significant expense and the sooner you can pay off the principal, the faster you can reduce those high-interest payments to free up money to invest in other endeavors.

It is a good feeling to get the burden of having a large monthly payment off your back. Paying off your house early means you can relax knowing your money is earning you interest and not your mortgage holder. There are significant advantages to paying off your house and people who are able to do this are usually pleased with the end results which come with the benefits of completing a loan.