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Home Mortgage Payoff

One of the best financial steps that a homeowner can take is to payoff their home mortgage as quickly as possible. Paying off the home mortgage means that you pay every cent of the mortgage.

The reason you should pay off your home mortgage is obvious, once the mortgage is paid off you will own your home completely. The only payments you’ll make on your home once you’ve paid off the mortgage will be the taxes.

Historically it was common for people to pay off their mortgages because home prices were quite low. Today paying off the mortgage is uncommon despite the huge advantages it gives to the average person.

Advantages to Home Mortgage Payoff

The biggest advantage paying off the home mortgage gives to the average person is an obvious one. Once the mortgage is paid off, there will be no more monthly mortgage payments to make.

This means that the amount of money available to the homeowner each month will increase by the amount of the mortgage payments. A person who has paid off their mortgage will have more disposable income and more money to save and invest. The individual’s income will increase without getting a new job or changing occupations.

Paying off the mortgage also provides a homeowner the peace of mind of not having to worry about making the mortgage payment each month. The home owner will no longer to come up with a housing payment and have more freedom.

A Better Credit Record

Another big advantage to paying off the mortgage is an improved credit record. Having a good credit score will make it easier to open bank accounts, make investments and get other lines of credit such as credit cards and car loans.

An improved credit record will also make it easier for a person to get jobs because they won’t have to worry about the credit check. It will also make it easier to take out student loans to improve their education.

Improved Quality of Life

Another advantage to paying off the mortgage is that a family will have more money to improve their lifestyle with. For example there will be more money for luxuries such as better cars, appliances, entertainment, eating out, clothes and vacations. A family might be able to take more vacations and have more fun.

The family that has paid off its mortgage will also have more money in its savings to deal with emergency situations. This means it won’t have to use its credit cards to cover emergency expenses.

A family which has paid off its mortgage will be in a better position to save money for its kids’ college educations. This means it might be able to afford better educational opportunities for its kids.

A final advantage to paying off the mortgage is that the family which has paid off the mortgage will be able to borrow a lot of money against the house. All of the equity or value in the home will be available to the family in the form of loans. This means the family will be able to borrow money when it needs to.