Is it best to pay all your mortgage off, or to leave some remaining.?

Answer 1

we have just paid ours off in full..thanks to an unexpected inheritance...i just cant tell you what a difference this has made to our lives...we are so relaxed now..you wouldnt believe it - SO...pay it off and live life!! - you wont regret it!!

Answer 2

Your question is more complicated than one way or another. There are different answers for different people. If you just want to never have a mortgage to pay again, then you should probably work to achieve your desired end.

However, if you are looking to make your home and your equity work for you, you can do a cash out refinance and partner up with a financial adviser who can conservatively return 8% over time annually making your dead equity work for you rather than sitting stagnant. The other part of the question is, can you afford to make the mortgage payment over time. You will have some income from your investments, but you will more than likely need to have supplemental income or savings to cover the difference. Also the purpose of investing the money is to save and gain, If you have to spend it all to make the mortgage payment it may not be a good idea. Remember all interest is a tax deduction so if you do not currently have many deductions then it may again be a good idea to refinance with a cash out.

I would be more than happy to prepare for you a total cost analysis to see if it makes sense for you. If you are interested, feel free to contact me at my office or by email

330-467-5333
or
[e-mail]

I am by the way a licensed Strategic Mortgage Planner, we take all of your long term and short term financial goals into consideration when preparing your Personalized Mortgage Plan and Total Cost Analysis

Answer 3

If you have the ability to, pay if off. Why not? Every day that mortgage sits there it is costing you alot in interest.

But you also have to detemine other factors. Like is the money that is going towards your mortgage better suited somewhere else? Remember that mortgage interest rates are ussualy the lowest of any form of debt. Not to mention being tax-deductable. I would put the money towards a car loan, or credit card debt before the mortgage payment. And then you also have to ask yourself if saving the money for something like children would be more valueable to you as well. Alot of things to consider.

Answer 4

No tax relief on mortgages in the UK. However, many people pay off all but £1 - that way the mortgage provider looks after your deeds for free, whereas you would have to pay the bank to store them securely.

Answer 5

all depends on your circumstances , yuor age, savings, marital status, attitude to risk and so on.

i never had a mortgage due to inheritance, but i have since gone into business and taken out a commercial mortgage and find that i need to exercise a bit more dicipline in the saving and spending habits..

i personally would choose to pay of the WHOLE sum if i don't have any plans in the foreseeable future. i.e. buy other investments etc!

all the best

Answer 6

It's good to pay your mortgage off. Few people can manage to do that nowadays. So if you are able to do it. GO FOR IT!! You can always take out a home equity line of credit if you need to take cash out from the equity at some point. :)

Answer 7

Can you identify a cheaper loan?

If so, then pay off all but £1, as previously stated.

If not, then perhaps extend when you need finance for anything.

Answer 8

leave a bit on to keep claiming tax relief on it.

Answer 9

surely you jest! pay it off as soon a s you can.