Question by AN: Should I pay off my mortgage sooner or later?
I just refinanced my home with $ 59,000 balance left for 15 years with an interest rate of 3.24%.
My monthly payments come out to be about $ 420 roughly including principal and interest but I have been making $ 1200 payments to pay off my mortgage sooner.(the additional money is reducing principal). Is this a recommended strategy? Will I save much money over the long haul in terms of less interest paid?
Answer by bdancer222
Yes, it is always a good idea to pay off loans faster and you will save a ton on interest over the long haul.
I hope that you already have an emergency fund of at least 6 months worth of expenses already set aside. You should also be taking advantage of retirement savings, especially if your employer offers a 401k.
I am also assuming that you do not have other debt — no credit card balances, no car loans etc. If so, pay those off first. The interest rate is likely much higher than your mortgage.
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