Re: If I have the money to pay off my mortgage, should I pay 100% or 95%?
03-02-2013 04:46 AM
I would just pay off my mortgage 100%. The mortgage account stays on your account for 10 years there after. With your mortgage paid off in full, that will leave you with a substantial amount of extra money per month that you can invest elsewhere.
You are now in the position to buy another home, and rent out your existing home. You would qualify for a larger home loan with a better rate since you already paid off your home loan too.
So you could rent out your existing house, and let it make money for you this time around. And as you are paying off your second mortgage, you are building equity on that too.
Starting Score: TU 749 02/02/2014
Current Score: TU 749 02/02/2014
Goal Score: 850