In today's economy, many citizens are struggling to keep up with their mortgages and doing whatever they can to stay on top of their mortgage payments every month to avoid foreclosure. For many citizens, paying off their mortgages is not only a goal but a dream. Paying off your mortgage has many advantages that can positively impact your finances as well as your quality of life.

Financial Security Over the Long Haul
One of the biggest benefits of paying off your mortgage is having financial security over a long-term basis. Without the heavy burden of a mortgage to pay every month, citizens can enjoy financial security over a long period of time. If the money that was formerly being used to pay your mortgage is saved, you can help build a solid nest egg for retirement or for emergencies. Additionally, if you should encounter hard times where money is tight, you will have one less bill to pay, and you will not have to worry about the bank foreclosing on your house. Paying off your mortgage can give a strong sense of financial stability and give you added security during tough economic times.

Flexibility in Your Monthly Budget
Once you pay off your mortgage you will have extra breathing room in your monthly budget. If you were struggling to pay bills before your mortgage was paid off you will be able to redistribute the money you would have paid on your mortgage towards high utility bills, household expenses or another expense that would have left you strapped for cash before your mortgage was paid off. Paying off your mortgage creates flexibility in your budget and makes it easier to keep your family afloat.

Protection Against an Unstable Housing Market
A major concern for many citizens is whether or not they will be able to keep up with their mortgage costs in an unstable housing market. A definite benefit for homeowners who pay off their mortgage is that they will be protected from losing their home due to financial insecurity in a rough economy.

Financial Freedom to Pursue Other Ventures
A pleasant advantage to paying off your mortgage is that you have the financial freedom to pursue other ventures. Whether you have always dreamed of living somewhere tropical to owning your own business, having extra money in your bank account every month allows you to pursue other opportunities that require financial backing.

Paying off Early Reduces Your Interest Amount
A huge financial liability that homeowners deal with when applying for a mortgage is the hefty cost of interest. The longer you carry a mortgage, the higher your total interest amount will be. By paying off your mortgage early, you are paying significantly less in interest. Once your mortgage is paid off the interest costs cease, and you can apply this money elsewhere.

The Bottom Line
Paying off a mortgage is a dream for many citizens. If this goal is within reach for you and your family it may be a very smart move to satisfy your mortgage balance. Not only will it free up extra money every month, but it provides added financial security during a housing crisis, allows you to save more, or even lets you chase down your dreams that needed extra financial backing. During an age where many people are struggling to keep their homes, paying off a mortgage is definitely a smart move.

Related Articles
  1. Home & Auto

    Take the Pain Out of Selling Your House – Online

    Is an online selling service really better than selling your home the old-fashioned way? It depends on what you're after
  2. Investing

    7 Creative Ways to Save for an Early Retirement

    Take note of these out of the box steps you can take towards securing yourself an earlier, more comfortable retirement.
  3. Retirement

    Birch Box Review: Is It Worth It?

    Learn more about the convenience of the subscription beauty box industry, and discover why the Birchbox company in particular has become so popular.
  4. Home & Auto

    The Pros and Cons of Buying Vs. Building a Home

    Before you decide whether to buy or build a home, you should weigh the advantages and disadvantages of each scenario.
  5. Real Estate

    Ultra-Luxury Real Estate: What's Hot, What's Not

    And is this a good time to buy? Here's the 2016 forecast for luxury residences in seven global markets, from Shanghai to London to New York City.
  6. Real Estate

    You'll Need to Shell Out More for a Mansion

    But not everywhere. The places prices are still booming are ultra-luxe enclaves, such as Beverly Hills and the Hamptons.
  7. Real Estate

    The 5 Best Real Estate Lawyers in Los Angeles

    Discover some of the top real estate lawyers practicing in the Los Angeles area, and learn more about the kinds of legal issues they handle.
  8. Personal Wealth & Private Banking

    Women, Invest In Your Financial Literacy

    Becoming financially literate should be on the to-do list of anyone who is not.
  9. Savings

    How to Save Your First $100,000

    Saving your first $100,000 requires the discipline to put money away and control your spending. But just remember – the savings get bigger as you go.
  10. Real Estate

    The 5 Best Real Estate Lawyers in Boston

    Discover some of the best real estate lawyers working in Boston, and read more about their legal experience and special practice areas.
RELATED FAQS
  1. Do FHA loans require escrow accounts?

    Federal Housing Administration (FHA) loans require escrow accounts for property taxes, homeowners insurance and mortgage ... Read Full Answer >>
  2. Does the FHA provide construction loans?

    The Federal Housing Administration (FHA) does provide construction loans for both new construction and rehab projects. The ... Read Full Answer >>
  3. Can FHA loans be used for foreclosures?

    A buyer can use an FHA-insured loan to purchase a foreclosure as long as the house will be the borrower’s main residence. ... Read Full Answer >>
  4. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  5. What is the range of deductibles offered with various health insurance plans?

    A wide range of possible deductibles are available with health insurance plans, starting as low as a few hundred dollars ... Read Full Answer >>
  6. How do I know how much of my income should be discretionary?

    While there is no hard rule for how much of a person's income should be discretionary, Inc. magazine points out that it would ... Read Full Answer >>
Trading Center