Mortgage payoff is the act of paying down loan principal ahead of the amortization schedule. Early loan payoff can save the borrower money that would have gone to interest however; early mortgage payoff is not for everybody.
Some borrowers for example, may be better off to consider paying down higher interest debt from credit cards before tackling early mortgage payoff. Many loan programs available today allow you to consolidate your high-interest bills into one lower interest payment, making it easier to pay off debt. This also makes your non-tax-deductible interest tax-deductible!
Before focusing on early mortgage payoff, you may want to be sure you have something planned for retirement. You may also wish to consider making home repairs or improvements. Do you have enough saved for your children to enter college? You can use the equity in your home to finance all these things, so before you focus on early mortgage payoff, weigh your other financial goals to determine what is best for you and your family.
Call (800) 251-9080 to talk with a Quicken Loans Home Loan Expert to get the answers for any questions you may have.