Most homeowners would love to do it – and many are according to reports that have come out over these past few years. They verify that a lot of people are paying off mortgage debt a lot earlier, or at least, making some additional payments ahead of schedule. How does this benefit homeowners at large? It provides a buffer to those who make early or extra payments, allowing them to absorb shocks to their pocket books a bit easier with those extra payments under their belts.
Paying off Debt Can Be a Powerful Money Saving Strategy
It stands to reason that paying off your debt is in your best interest even if you can just lessen the load a bit. The interest you are saving by doing alone is a great benefit although the payments you make to do so may not be tax deductible if it pertains to an owner occupied property. However, one may want to look into balancing paying off debt with investing one’s money in order to result in tax deductions. One can do so by seeking out a qualified financial planner like AVB, who can help figure out the best tax- or money-saving strategies for your particular circumstances.
Your Strategy Depends On Your Circumstances
Whether you want to pay off your mortgage quicker and create that buffer for emergencies will largely depend on where you are in the life spectrum. If you are relatively young, it’s in your best interest to cut down on interest payments going forward although you are essentially more able to bear the weight of debt in your younger years. As you get older, however, the weight of debt becomes an increasing burden, but if you have income coming in, paying off your mortgage may not necessarily be in your best interest if you are looking to leverage the equity in your home for your later years. Some seniors opt to leave their home as part of their estate – the equity of which will be passed onto heirs.
Deciding What’s Best For Your Situation
Regardless of where you are in life however, I think most would agree that the focus is on eradicating bad debt (loans that you draining you and that aren’t necessarily adding to your assets in a positive manner or backed by a tangible item). It’s always best to speak to a reputable financial advisor regarding the strategies that one can leverage to put oneself on better economic footing. A mortgage buffer may not be for everyone, but if one can swing it in their current situation, it is certainly an option that should be given some serious thought because the ultimate financial benefits could potentially prove well worth the consideration.
If you’d like some expert advice on deciding what’s the best course of action to help you to save money on your mortgage, call us on 1300 123 181
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