George L. Duarte

Mortgage Loans Fremont California Horizon Financial Associates

  • Home
  • About
    • About
    • Awards
    • Privacy Policy
    • California Privacy Notice
    • Accessibility Statement
  • Reverse Mortgage Library
  • Resources
    • Real Estate Corner Radio Show
    • VA Loans
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Glossary
    • Closing Costs
    • Living Trusts
  • Reviews
    • Video Testimonials
    • Reviews
    • Write a Review
  • Apply Now
  • Contact

Reasons To Think Twice Before Paying Off Your Mortgage Too Quickly

September 5, 2013 by George Duarte Leave a Comment

Reasons to Think twice before paying off your mortgage too quicklyMost of the financial advice out there is focused on how you can pay off the mortgage on your home as quickly as possible, from making lump sum payments to switching to bi-weekly payments rather than monthly.

However, there are a few things that you might want to consider before you put all of your financial efforts into paying off your mortgage as quickly as possible.

Diversifying Your Investments

Of course, paying off your mortgage as fast as possible has a number of obvious advantages. You will be able to own your home a lot sooner and you will decrease the amount of interest you pay over the years. However, are you diversifying your assets?

Savvy investors know that they should decrease their risk by spreading their money into a number of different types of assets and investments so that they don’t have “all their eggs in one basket.”

If you have extra money and you want to invest it, you might want to make sure that you have a variety of investments including savings, stocks and bonds, rather than just investment in your home.

Liquid Assets

Another thing to consider is that having your money invested in your home means that it will not be a very liquid asset. If you needed the cash right away, you could have to sell your home or take out a home equity loan, which is a complex and time consuming process.

Before investing all of your money in your mortgage, consider creating an emergency fund as well so that you have some easily accessible money when you need it.

Earning More With Better Investments

Before investing all of your money in your mortgage, find out whether you would be able to earn more by investing it into other opportunities such as interest-bearing bonds. Sometimes stocks, bonds and mutual funds have better returns over time than the typical mortgage interest rates.

Perhaps paying off your mortgage as quickly as possible is the best option for you. However, make sure that you consider all of the factors before committing to this decision.

To find out more about mortgages and your home, contact trusted mortgage professional today.

Filed Under: Mortgage Tips Tagged With: Mortgage Tips,Liquid Assets,Investments

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sidebar

George L. Duarte

MBA, CMC, CMHS
Call 510.377.9059
Fremont, CA

California DRE Corp Lic no. 01032295
DRE Personal Brokers Lic. No. 00943635
NMLS Corporate Lic. No. 302358
Personal Lic. No. 302219
Horizon Financial Associates Logo
View Lending Cert
NAMB Member Cert
Get a Rate Quote
Mortgage Refinance Companies
NAMB
Veterans VABA Member
CMC Logo

Follow My Posts and Sign Up for My Newsletter!

Download Our App!



Horizon Financial Associates BBB Business Review

Connect with Me

Recent Awards

Mortgage Pros
2019 Best of Fremont 2017 Best of Fremont 2016 Best of Fremont
See More Awards →

Browse Articles by Category

Recent Articles

  • A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years
  • A Quick Look at Reverse Mortgages: The Golden Ticket to Enjoying Your Golden Years
  • Understanding Mortgage Amortizations and Why Longer Periods Can Cost More
  • What Does Contingent Mean on a House Sale
Horizon Financial Associates is a BBB Accredited Mortgage Broker in Fremont, CA
Equal Housing Opp
CRB Logo REALTOR logo

Our Location


39488 Stevenson Pl
Fremont, CA 94539

Copyright © 2023 · Powered by MySMARTblog

Copyright © 2023 · Genesis Sample Theme on Genesis Framework · WordPress · Log in