If you’ve recently come into some money, you may be tempted to pay off your mortgage early so you can finally be done with monthly payments and own your home outright. But while plenty of people choose this route for the security of owning their homes free and clear, it doesn’t always make sense, especially if you are near or in retirement.
“Although it may seem like peace of mind to finally own your own home, there are other financial factors you need to evaluate before making a final decision,” said Jane Bryant Quinn, personal finance columnist for AARP Bulletin, in an interview.
The money you intend to use to prepay your mortgage may be better used for paying down debt with higher interest rates, for example, or for investing in the future. Here are five reasons why you shouldn’t pay off your mortgage early.
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