Is it better off to pay mortgage loan by using all avalaible resource or wait for the alloted time ?

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I just want to finish my loan as soon as possible by using all the resouces that i have .Will i be better off by paying before than the alloted time or utilise the time frame alloted by the lending company .In doing so i may not be able to do other thing which is also important.Which is better before the time or wait for the alloted time?

5 Comments
  1. Reply
    keahistreet
    April 29, 2011 at 11:37 pm

    Interesting question, but not uncommon. Go to http://www.daveramsey.com for some ideas. Now here is my take: pay your mortgage down as fast as you can. You DO NOT make out better having the tax break on your taxes. People who think so can all send me $ 10000 a year, and I guarantee I will send you back a $ 3000 rebate….see that. Now as your budget allows, have a little fun, and pay off all your bills/debts first. Then slug all you can each month, even twice a month. All that interest you save is yours. And when you are debt free, and have no credit cards, then think what you can do. You are on the right track. Frugal now for a while, or frugality for the rest of your life.

  2. Reply
    Leah
    April 30, 2011 at 12:28 am

    get a piece of paper and list all your bills on it with their balances and interest rates. Put your money in to the highest interest loans first, then work your way down the line….

    Also, you can make additional principal payments on your mortgage (you will have to tell them to apply it to principal, or they’ll put it in escrow). Additional payments early on in your mortgage can save you LOTS on the back end of your mortgage!

  3. Reply
    beth
    April 30, 2011 at 12:36 am

    Pay off other debts first!

    Make additional payments to principal if you wish.

    Are you sure you wouldn’t rather put some of those available resources in savings? Emergencies come up (cars break down, fall and break something, etc), it’s better to have money on hand rather than use a credit card.

    Depending on your loan amount, etc. your home mortgage interest could be fully deductible. You have to use Schedule A (Itemized Deductions). If you AGI is at or below a certain amount ($ 150,500 married-jointly 2006), then your Sch A deductions are NOT LIMITED. So basically, your tax liability is lower. Lower Taxable Income, less the gov gets, higher return if you paid in enough during the year.

    Talk to a REAL accountant before making this big of a decision. A CPA will give you an answer that is more knowledgeable, detailed, and specific to your situation than most of what you’re going to find online or at Answers.

    The American Institute of Certified Public Accountants website as several articles about mortgages and the tax advantages. The calculators are also helpful.
    http://www.360financialliteracy.org/Financial+Topics/Personal+Finance/

  4. Reply
    hi91977
    April 30, 2011 at 1:20 am

    pay off your credit card debt first. than make an extra mortgage payment each year. mortgage interest s tax deductable, credit card interest is not.

  5. Reply
    Online Help
    April 30, 2011 at 1:43 am

    It’s a Wonderful Idea that your better off to pay mortgage loan. You can find more information here.

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