If you own a home and have a mortgage, you may have had the question, “ What would it take to pay off my mortgage?”
In this article we will show you the ins and outs of paying off a mortgage, what the road might look like to get there, and if it is the right decision for you.
Benefits of Paying off My Mortgage Early
First off, let us consider the benefits of being able to pay off your mortgage. Not having a monthly house payment would save you an incredibly large sum of money each year. If you are moving on to the next phase of your life and able to retire this option might seem particularly drawn to you. Most individuals who retire, love the benefit of entering this next chapter of life not having the stress of making a large house payment now that they have stopped working.
Where Do I Start?
All of this sounds very appealing, but unless you have a plan—-you are going to go nowhere fast. Let’s discuss what it would really take for you to be able to pay off your mortgage. Aside from downsizing your home and using the costs to purchase a smaller home (which is a larger step), here are a few baby steps to get you started- before moving on to bigger solutions.
Take a fine-tooth comb through your budget and spending each month and find out where you can cut some costs. This might look like not eating out every day or skipping on your morning coffee a few times a week. Once you can identify a lump sum you are willing to sacrifice, you can then add it into your monthly mortgage payment to start paying down your mortgage.
Keep an Emergency Account
Before considering putting extra money or funds towards paying off your mortgage, it is smart to have an emergency account for a rainy day. Think about the emergencies or unexpected expenses that can occur in a year. Maybe your car breaks down or you find a large leak in your basement. Would you have enough savings to cover the cost and still be able to afford the cost of living?
Keep a Savings Account
In addition to your emergency savings account, it is best to have 3-6 months of living expenses saved and set aside. You never know if you could lose a job unexpectedly, or be involved in an accident where you are out of work.
As you get older, saving for retirement becomes increasingly important. Consider your retirement savings. Are you adding to it every month or is it sitting at the same dollar amount it was last year? Think of your future self and how you will be taken care of when that time comes. Put yourself in a good position now to be in a better position then.
Contact Sell Your OKC Home Now for All Your Selling Needs
“Should I pay off my mortgage?” If you have asked yourself this question, and are onto bigger steps in that process—let Sell Your OKC Home help. When you start looking to sell your home in Oklahoma City, Oklahoma, and the greater Oklahoma County area, give us a call. Tell us about your property and selling goals and we will make you an offer. Contact us today!