20 Year Mortgage? 5 Benefits to Paying Yours Off In Less Time

Most mortgage terms are for thirty years. That is the traditional length of time most lenders arrange for homeowners to pay off their home loans. Nowadays people are opting for shorter loan terms including 20 year and 15 year mortgages. There are several advantages to having a shorter term loan repayment plan. Below are five benefits.

Pay less interest

Spending one dollar more than you have to spend is a waste of money. Paying interest is the cost you pay for borrowing money for your home. Deciding to pay off your home sooner will save you thousands of dollars in interest payments. This frees up money for you to invest back into your home or other into other income generating investments.

Asset to Pass Down

Having an asset that you can pass down to loved ones can make all the years of hard work worth the time. Instead of leaving your beneficiaries with debt, having your home paid off earlier gives you time to enjoy your property and pass that value on to your family.

Recoup your money

If you decide to look into new homes in Colorado you may choose to sell your home. Selling your home can help you recoup all of the money you paid into it, in addition to profits from home value increases in your area. You may even choose to rent your home and generate consistent monthly income.

Security in retirement

One of the main concerns when people make preparations for retirement is the limited amount of income they receive on a monthly basis. As a result, people look to either downsize or completely rearrange their lives to accommodate their new income reality. Having your mortgage paid off gives you security. Having a home to live in is one of the most basic needs that no longer has to be factored into your retirement plans.

Debt free

Mortgages are typically the largest debt people owe. Paying off your mortgage sooner rather than later can get you on the path to becoming debt free. All of your income can be used for investments instead of paying down debt. This can ultimately lead you to free up more of your income for other investments or better family vacations.

Living a more frugal and modest life in your earlier years can really go a long way to get you out of debt quicker. It is as always a personal decision and you must access what is right for you and your family. But there are many benefits to living a debt free life and not paying more then necessary in interest.

If you are looking to purchase a home in the near future, obtaining a shorter term mortgage is a great option. That choice will have you fully owning your home and becoming debt free sooner than ever before.

Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She enjoys writing on fashion and business, but any subject will do, she loves to learn about new topics. When she isn't writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking.