Shorter term mortgages pay off.
Here are five things to consider.
- The best way to build equity is to pay off your mortgage as quickly as possible.
- A shorter mortgage time frame can be a part of your retirement strategy. The faster you pay off your mortgage, the closer you are to entering retirement without debt.
- If the increased payment for a shorter term mortgage would be hard for you to comfortably manage, explore whether refinancing at the same term could offer savings given the current rate environment.
- Regardless of your loan term, you can pay down your existing mortgage more quickly by making extra principal payments whenever you can afford it, whether that’s annually or monthly.
- The money you save through an early mortgage payoff can help to fund your children’s college costs.