The dilemma of budgeting and long-term financing is that money can be put various places. For example, what makes more sense as an ongoing strategy? Should I put more money in retirement accounts and other investments? Or, if I have extra cash, should I work to pay down my mortgage as quickly as possible? There are certainly arguments on both sides of the issue, and as noted in this article, decisions are not always black and white. However, I operate under a general desire to pay off my mortgage as quickly as possible. I look forward to the day where I am obligation-free.
Peace of mind
There is something about being free of debt. Once you sign up for a mortgage, some of that must be surrendered for many years. The mortgage becomes an obligation that is counterbalanced with the satisfaction of owning a dwelling place. I certainly enjoy owning my own home, but sometimes that mortgage can be a heavy burden. If I were free of that mortgage, it would be a financial weight off of my shoulders. Most of the time it is not a major source of stress, but sometimes having a big loan is a challenge.
Flexibility
What else could I do with my finances if I did not have that monthly payment? It is hard to really think about that until I am getting close to being done. There are still years to go. Would I take on another loan? Or, would I enjoy a little free spending? When you spend much of your adult life making sacrifices in order to cover the mortgage each month, it is hard to shift that mindset. There is also the reality that I will still have other obligations. College expenses, medical costs and other financial hurdles will likely be present.
Something to deduct
There is also the value of having a sizeable mortgage deduction when it is tax time. When the government talks about taking that deduction away in order to deal with budget deficits, I start to get a little apprehensive. After all, as a homeowner in the state of California, that deduction represents a key financial benefit. If I were to pay off my mortgage, it would change my tax situation a bit. That is something I have considered, but it hasn't changed my philosophy. Each month I look to add as much as possible to my mortgage payment.
I am looking forward to the day my mortgage is paid off. Whether paying it off early is the best financial decision doesn't change the peace of mind that I will feel.
Peace of mind
There is something about being free of debt. Once you sign up for a mortgage, some of that must be surrendered for many years. The mortgage becomes an obligation that is counterbalanced with the satisfaction of owning a dwelling place. I certainly enjoy owning my own home, but sometimes that mortgage can be a heavy burden. If I were free of that mortgage, it would be a financial weight off of my shoulders. Most of the time it is not a major source of stress, but sometimes having a big loan is a challenge.
Flexibility
What else could I do with my finances if I did not have that monthly payment? It is hard to really think about that until I am getting close to being done. There are still years to go. Would I take on another loan? Or, would I enjoy a little free spending? When you spend much of your adult life making sacrifices in order to cover the mortgage each month, it is hard to shift that mindset. There is also the reality that I will still have other obligations. College expenses, medical costs and other financial hurdles will likely be present.
Something to deduct
There is also the value of having a sizeable mortgage deduction when it is tax time. When the government talks about taking that deduction away in order to deal with budget deficits, I start to get a little apprehensive. After all, as a homeowner in the state of California, that deduction represents a key financial benefit. If I were to pay off my mortgage, it would change my tax situation a bit. That is something I have considered, but it hasn't changed my philosophy. Each month I look to add as much as possible to my mortgage payment.
I am looking forward to the day my mortgage is paid off. Whether paying it off early is the best financial decision doesn't change the peace of mind that I will feel.
