Chances are, if you have a mortgage, you've probably wondered if it would be better to pay it off early. If that's the case, you're not alone. There are compelling arguments to be made for and against. Our real estate agents are here to help you make the best financial decision for your specific situation. 

Pros and Cons of Early Mortgage Payoff

On one hand, there's some logic behind the idea that, if you have any kind of debt, it's always better to pay it off sooner rather than later. And paying off your mortgage early, if you have the available funds to do so, will certainly reduce the amount that you pay in interest in the long run. 

But there's a counter-argument to be made as well. One of the most common reasons many financial experts give for not paying off your mortgage early is that the amount you save in interest probably won't be more than you could earn by using that money for other long-term investments, such as real estate or the stock market. At the end of the day, the right call depends on your unique priorities and situation. 

Pay off your mortgage early if...

• You've met other financial goals. Paying off your mortgage early shouldn't necessarily be your first financial priority. It's usually a good idea to check off some other financial boxes first, like filling up your retirement accounts or working on your kids' college fund. Once your other financial goals have been met, paying off your mortgage early starts to make more sense.
   
• You value financial freedom. Paying off your mortgage is an emotional decision as well as a financial one. A home loan is probably the biggest debt you will ever take on, and many people simply don't like that debt hanging over them. If you value being debt-free more than the possible savings you could accrue by holding off, than paying off your mortgage early might be the right call.
   
• You prefer a sure thing. One common argument against paying off a mortgage early is the potential to earn more by investing your money elsewhere. But the stock market, for all its potential, is not a sure thing. The interest saved by paying off your mortgage is a certainty. For some, that sure thing is preferable to a gamble that may or may not pay off. 

Don't pay off your mortgage early if...

• You've already paid off the interest. Over the lifetime of your mortgage, the money you pay gradually transitions from being mostly interest to mostly principal. If you've reached the point where you're paying mostly principal, then working on paying off the loan early won't actually save you all that much.
   
• You still have other debt. Generally speaking, your mortgage should be one of the last debts that you tackle. Many other forms of debt, including car loans, credit card debt, and student loan debt, come with higher interest than a typical mortgage, and should be paid off sooner.
   
• It will leave you cash poor. Liquidity is an important consideration, and it's often a mistake to direct extra funds toward your mortgage if it will eat up all your cash. Many financial experts recommend waiting until you have a 12-month emergency fund saved up before you think about paying off your mortgage early. 

Contact Wardley Real Estate today to learn more about your mortgage options, and find out if paying off your home loan early is the right choice for you. In addition to offering the widest variety of Las Vegas homes for sale, our team is dedicated to helping you make sound financial decisions.