Owning your home is a great endeavor. It is your home and allows you to live, laugh, and grow without the worries of a landlord or having someone overhead who bounces around and stays up too late at night. Making the payments can be beneficial when you are younger because you do get some money back throughout the year. But if you waited until your late 30s or 40s to get a mortgage on your home, you may still be paying this amount way into your retirement.
The big question becomes whether or not you should finish paying off the mortgage or keep up with the regular payments like you are already doing. There are some positives and benefits to both. If you are uncertain about whether paying off or keeping is the best option for you, make sure to contact the professionals at Todd Koscinski to get started today!
The Benefits of Paying Off Mortgage
There are many benefits that come from paying off your mortgage. First, you will be totally in charge of your home. You won’t have to worry about the bank getting mad for a bit and changing the policy or the rules. If you have a variable rate, this is going to save a lot of money because you will not have to worry about the interest rate going up and down all the time.
One of the biggest benefits of paying off the mortgage though is the fact that you will no longer have to make this payment. The mortgage payment is one of the biggest expenses in your life and if you are able to make a large payment or to pay down the house a bit, you could save that much more money each month. Think of how nice it would be to place another $1000 a month towards your retirement so you can really make a difference.
The earlier you pay off the mortgage, the better. If you are able to pay off this amount in your 50s, you are just that much closer to retirement over all. You can use that money to pay for savings or retirement or to go out and see your kids when they move out. Most mortgage payments are going to be pretty steep so once you can get rid of this payment, whether it is one year before retirement or ten, you can start saving that money to grow your social security nest egg more than ever.
If you are interested in seeing some of the ways that you could pay off your mortgage so you can keep that money in your own pocket rather than having to hand it over to the bank each month, make sure to have a seasoned tax professional by your side from the beginning. This will help you to understand the positives and the negatives of your mortgage payments so you can make the best decision for your needs. Contac the professionals at Todd Koscinski to help you out from the beginning.
The Negatives of Paying Off Mortgage
There are some negatives to paying off your mortgage. In some cases, you could still take some of the interest payments off on your tax return. This could help to reduce the amount that you have to pay into taxes if you have a traditional IRA that helps you into retirement. If the amount of refund from the mortgage interest payments is high enough, you could have a very good reason for wanting to keep making payments and getting that added benefit. If you are uncertain about whether it is going to be a good idea to give up the tax benefit and make a full payment on your home, make sure to contact the professionals at Todd Koscinski to help.
Another reason that you may choose to not pay off your mortgage is that you just don’t have the money to do so. Many people lost their jobs with the current economy and this could have put them behind on their retirement planning and maybe even needing to take a bit out to make ends meet until later. You may barely have enough to get through retirement much less having enough to take on a big house payment to get it all done. If this is the case for you, it may be best to just keep making the payments until you are all caught up.
Figuring out which is the best option for your needs can be challenging. While it would be nice to have that money paid off, some people find that it actually makes things easier for them in terms of getting the money back during tax time so they keep the mortgage where it is at. The Professionals at Todd Koscinski will be able to look over your unique case and help you to determine the best course of action.
When it comes to planning for your retirement, it is important that you get the right team on your side from the beginning. There are a lot of people promising to have the answers that you need, but most are just going to disappoint. LINDA from TAX PROBLEM RESOLUTIONS INC in LONGWOOD, FL can help to take care of all your retirement needs, including those that have to do with paying off your mortgage or not. Make sure to contact our professionals today to get started.
