Though it’s common knowledge that overpaying your monthly mortgage can help lower the overall time and cost, it’s also a bad idea to spend too much money toward the mortgage.
For one, it’s a good idea to overpay your monthly mortgage if you can as it saves you time and money. Many try to have it paid off before retirement.
On the other hand, with interest rates at historically low levels you could be investing the money elsewhere (like in the stock market), and possibly make more money than you would have saved by paying it off early.
If your job is not secure or has big variances in compensation, getting rid of debt exposures would be a great idea as long as you maintain enough savings to cover the unexpected.
However, if you have other debts to pay off that have higher interest rates or could be more pressing than your mortgage, then that’s where your money should go.
Contact me today to find out which way works the best for you!
