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Pre-pay Your Mortgage Early – a Wise Thing to Do?

Taking callers questions on this touchy topic

What this recession is clearly telling us, is traditional retirement and financial planning methods have gone bad.  For instance, have you been told that the best way to become debt-free is to send additional payments to your mortgage company?

Millions of American homeowners have followed this path, then lost their jobs or faced a change in health, spent all their emergency cash and charged up credit cards…then lost their homes.

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In an emergency situation, would you rather have $50,000 of home equity or $50,000 of cash? If cash is king, then why rush to pay your mortgage early?

Economist of the Federal Reserve Bank of Chicago, Gene Amromin, shares the meat and potatoes of his report, “The Tradeoff Between Mortgage Prepayments and Tax-Deferred Retirement Savings“.

He goes on to say that, “People are leaving so much money on the table…they forgo cheap borrowing and greater investments which are two strikes against you”.

Financial and Mortgage Review: Request a free analysis on the best method to get your home paid for and still save for your retirement and kid’s college education, possibly, without increasing your monthly budget.  We’ll arrange for a free 30-minute coaching session with a licensed financial professional in your area.  Contact us @ 708.686.2000 x1 or email us, info@moneysmartradio.com

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