Mar 14th, 2009
What a Mortgage Prepay Does Get You: Peace of Mind
If you have a low, fixed rate mortgage, prepay doesn’t typically make financial sense. However, there is one thing that a mortgage prepay does get you: peace of mind.
It’s the same kind of peace of mind you get from being free of the car loan, the student loan, or the credit card debt, but amplified. If you’re able to pay off your mortgage early, you may feel free to quit your job or cut back on your hours. From a financial point of view, it’s like getting an investment return at the rate of interest of your mortgage, so if your interest rate is high, it could really be appealing.
It doesn’t always make financial sense, but it may make psychological sense. If it does, really think about it! Nothing wrong with it, especially if it puts you at ease.
