I'm a single 29 year old guy with 43k left on my mortgage. I've accumulated a large amount in savings over the past year as my cost of living is very low. I do not have any investments.
I'm thinking about dumping large amounts into my mortgage as allows and paying it off as early as possible. Is there any reason that I shouldn't do this? (IE - Tax benefits or other perks)? In my situation, do you think it would best to pay this off as soon as possible?
Thanks!
There are no tax advantages at the point you are at. Too bad you had not been paying extra all along, but it did not cost you that much. Do not "dump" unless you have a boatload of money in the bank. You do need an emergency / back-up fund. I would suggest (without more specific info) that you add $1,000 more principle to your monthly payments. [Then if something bad happens, you quit paying the extra, and live off the money in the emergency fund for awhile.] {If you have a boatload of money, you could pay $1,500 or even $2,000 extra. The point is to be replenishing your bank account even as you are paying out.}
A house is an investment, and you are getting a tax free return at whatever interest rate you are paying. But you need to be looking into other investment possibilities also.
I bought a new house a little over six years ago. After a few years I decided to aggressively start paying off the mortgage -- two more payments and I'll be debt free!
As for "tax advantage" I can't imagine that it would outweigh whatever interest you pay to the bank.
For real???? at 29 years old?? how much was this house?
If you have $43,000 and If you come up with that and you will not be TOTALLY cleaned out and would be mortgage free, YES SIR.
being debt free is a good thing.
God bless
Congratulations! I'd say pay it off as long you also saved for emergencies. If anything went downhill for you eventually your savings could run out and you could get into foreclosure. If you paid that sucker off, no such problem.
