Paying Off Your House with a 15 Year Mortgage
Filed under: Mortgage Rates
It is common for home buyers to assume that the standard mortgage is 30 years. While 30-years is a common length for a mortgage payoff, it doesn’t mean that you can’t pay off the home sooner. Today, I want to help you see the benefits of paying off your home in 15 years.
Benefits of a 15-Year Mortgage
The obvious benefit to paying off your home in 15 years is the accelerated rate to your full ownership of the property. Imagine your life if you didn’t have a mortgage to pay every month! Paying off your home will set you up for retirement as you take care of most of your housing costs and eliminate the monthly expenses from your fixed budget.
Paying Off a Tangible Asset
This payment plan helps you work towards paying off a tangible asset. The house is always going to be worth something. Do you have other investments that are guaranteed value in the future? Some of the stocks in your current portfolio have the chance of being worth $0 in the future. But, a home will never do that.
Expand Your Lifestyle
Here’s the concept: imagine your average mortgage payment is $1,800 per month. If the house was paid for, then you would have another $1,800 per month to put toward your lifestyle. Paying off your home can be one of the best things that you can do for your financial future. Many popular financial planners, such as Dave Ramsey, talk a lot about the 15-year mortgage as an option to get out of debt.
Use this vehicle to create the financial freedom that you desire for your family. The faster you pay off the home, the more flexibility you will have with your future budget. Not only will you free up the mortgage spending, but you will be able to reduce the overall interest that is paid on the loan. A fast payoff schedule will save you thousands of dollars in interest costs.
Do you have questions about refinancing or buying a home with a 15-year mortgage? Give me a call or send me an email, I would love to talk to you about it: (951) 473-0390 or [email protected]