07 Aug 2022

Why shouldn’t you pay off your house early?

Pay your House Early

When you have the funds to pay off your house early, don’t rush and complete the last payment. It is tempting to finish repaying your mortgage as soon as possible, but there are benefits to delaying and completing it within the time frame. For example, if you have a mortgage and a low credit score but want to boost your credit score, it is best to keep your mortgage open as it is a strong line of credit. 

If you are also looking to keep a credit line open because you are interested in looking trustworthy to your lender, this is another reason that paying off your house early isn’t a great option for you. It is also not enough to complete the entire repayment amount, especially if you do not have savings. Experts recommend saving at least 3 to 6 months’ worth of monthly payments in your emergency savings before paying a loan. 

Without savings, if anything happens, you will not have the funds to help yourself out of the situation. If you are interested in a loan, it is good to speak with a Mortgage House lender. At Mortgage House, we have various tools and resources online to find out exactly how much you are eligible to borrow. Using one of our free online mortgage calculators, you can figure out your exact repayment amount depending on the interest rate and the borrowed amount.

Why You Shouldn’t Pay your House Early Conclusion

In conclusion, paying for your house early comes with benefits, but it also comes with some negatives that can offset the benefits. It is good to speak with a professional who knows a lot about mortgages and finances to discuss what is right for you.

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