Home - Mortgage Loans | Personal Loans | Bad Debt Loans | Foreclosure Loans

Best Lenders for Foreclosure Loans, Best Foreclosure Tips, Best Lenders for Personal Loans, Best Home Loans, Best Lenders for Auto Loans, Best Home Equity Loans, Best Credit Cards, Best Credit Repair Tips, Best Cash Advance Loans, Best Debt Reduction Loans, Best Mortgage Loans.
Title Menu

In a hurry to pay off your home loan?

Written by: Syd Johnson

It is possible that after a few years you might get sick of making monthly payments on your home. Then it occurs to you, why not put all your extra cash into paying off the home loan. It certainly sounds like a great idea. After all, no one wants to be in debt forever. If you are the average homeowner maybe you should give that idea a second thought.

Unlike other types of debt like credit cards and car loans, the interest on your home loan is tax deductible. So when you look at your mortgage payments, talk to your tax advisor to see what kind of adjustments will be made once you do you tax returns. If you have car loans, student loans and any other type of personal debt, try to pay those down first and then take the cash and put it towards your mortgage.

Take a look at your overall financial picture. If you have any other type of high interest debt, use the extra cash to pay off the outstanding balances on those items before you start putting money towards your mortgage balance. Then you want to look at your investment portfolio. Find out the rate of return on your mortgage if you prepay, since it's basically paying yourself. Then compare it against the return that you get from other investments and this will give a bit more to go on before you decided to funnel extra cash towards the mortgage.

Build up your emergency fund. It is always a good idea to have cash on hand for the little emergencies, but a nice cushion is even better. How long could you continue to make your mortgage payments if you lost your job? If your answer is six months or less, build up your cash reserves then consider paying down other long term debt like your home loan.

So why should you prepay on your mortgage?
If your home loan is the last hurdle in you goal to become debt free, pay as much as you can towards reducing the loan. Even if you get the maximum tax right offs nothing can compare to the psychological effect of knowing that you own your small piece of America. Work out a budget with a financial planner or a tax advisor and setup a payment schedule.

About the Author

This article may be freely distributed as long as there is an active link back to http://www.rapidlingo.com

Other Related Articles:

Useful Information About Homeowner Loans UK
Homeowner loans UK are a very versatile type of personal loan that are offered to the owners of homes or real estate. These loans use the value of the home or real estate to secure the loan for the homeowner, allowing for both a larger loan amount...read more

Online payday loans - associate technology to get an instant loan approval
Rightly said by Corita Kent that, "Life is a succession of moments. To live each one is to succeed" Life is full of uncertainties. One never knows when a financial emergency can arise. You will deal it with comfort if urgent cash need...read more

UK Secured Loans Need To Be A Part Of Your Financial Portfolio
All decisions in life need to be made thoughtfully. This is no different from your personal financial decisions. They need to be considered wisely. Through the course of your life you’ll need to assemble a financial portfolio that provides you...read more

Return to Home


Best Auto Loans, Best Bad Credit Auto Loans, Best Bad Credit Loans, Best Bill Consolidation Loans, Best Cash Advance Loans, Best Credit Cards, Best Credit Repair Tips, Best Debt Consolidation Loans, Best Debt Reduction Loans, Best Foreclosure Loans, Best Free Credit Reporting Tips, Best High Risk Loans, Best Home Equity Loans, Best Home Loans, Best Lawsuit Loans, Best Mortgage Loans, Best Pay Day Loans, Best Personal Loans, Best Products on the Internet, Best Real Estate Services, Best UK loans, Best Unsecured Loans
Subscribe to Mailing List | Private Policy | Unsubscribe | Site Map