7 Times It Makes Sense to Pay Off Your Mortgage Early

Here are seven good reasons to get rid of your biggest financial obligation.

1. You’re tired of paying interest to a lender

Couple Getting Mortgagebernatets photo / Shutterstock.com

Lenders earn money by collecting interest on loans. That means the longer it takes to pay off your home loan, the greater the profit your lender will realize.

Let’s say you bought a home five years ago for $300,000 using a 30-year, fixed-rate loan at 4.5 percent interest. Your monthly house payment is $1,520, but if you add in another $572 each month you can pay off the debt in 15 years instead of 25.

You’ll probably need to make short-term financial sacrifices to come up with the extra cash. But it will be worth it in the long run, as it will save you nearly $80,000 in interest charges

That’s more than enough to pay for a spectacular mortgage-burning party to celebrate your financial freedom.

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