Mortgage Payoff Requires Consideration
According to Robert O Weagley, Associate Professor and Department Chair of the Personal Financial Planning Department of the University of Missouri in the US, there are certain steps and considerations in paying off a mortgage early.
-Paying off your mortgage early makes sense if you do not have debt that has a higher interest rate than that of your mortgage. Debt with a higher interest rate should be paid off first. -Fund your retirement savings first. -Establish an emergency fund of three to six months living expenses for unexpected financial expenditures. -When you can earn rates of return from an investment higher than the interest on your mortgage -When you have established an adequate insurance program; life, medical and disability income. Consulting with a financial planner or advisor would be a smart choice for those who are trying to make sound financial decisions in today’s economy. Remortgage is a strategy that can be used to consolidate debt and to fund an emergency savings.