Pro Tip: Check Pros and Cons Before Paying Off Mortgage Early
The financial pros over at CNBC released a new set of tips on Monday, urging homeowners to carefully weigh all of the pros and cons before paying off a mortgage early.
“If a client thinks they’ll be in a house for 10 years after the mortgage payoff, I encourage them to do it,” said Kristi C. Sullivan, CFP and owner of Sullivan Financial Planning. “But if they want to move soon after they are able to pay off the mortgage, I don’t.”
Meanwhile, David Mendels of Creative Financial Concepts urges borrows to keep mortgage rates in mind.
“Far too many clients focus on paying off their mortgage in retirement, only to end up ‘land poor,’” he said. “Especially at today’s low rates. I urge them to think less in terms of the added payment than of the added safety net of the extra cash.”
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