Mortgage Planning

Living the Dream? For most that means buying a house and paying off all debt as quickly as possible. That’s a great dream yet here’s a few reasons why keeping your mortgage will work to your benefit.

Did you know there are many scenarios where it may not be in your best interest to pay off your loan? Below is a list of the most common areas in which people should considered before making decisions:

 You’ll lose out on that interest deduction

Paying all that mortgage interest has a benefit, and it comes in the form of a possibly sizable tax deduction. If you are in a high tax bracket and have a relatively high mortgage, you may want to keep the mortgage rather than paying it off. A tax payer in a 20% tax bracket who has spent $24,000 in mortgage interest per year gets a $6000 reimbursement. You’d be throwing that away by paying off your mortgage.

You have other debts

It doesn’t make sense to pay off on a low interest rate mortgage first when you have high interest rate credit cards, student loans and even car loans.

You haven’t saved for your kids’ college education

Have you saved enough for your children’s college education? Rather than paying extra payments on a low interest rate mortgage, start saving for your children’s college fund. It does you no good to pay off your mortgage then sadly realizing you are paying a much higher interest rate for college.

For the most part, be careful not to sell yourself or your financial goals short to pay your home off sooner.

If you want a full team of experts, we’re happy to help you make the best decision. Taking action now is the wisest way to achieve your goals for tomorrow. Please don’t hesitate to reach out to us, we look forward to hearing from you!