SThe Pros and Cons of Paying Your Mortgage Off Early

Buying a home is an excellent investment to consider. In most cases, people opt for a mortgage to fund their dream home. However, paying off the mortgage comes with some costs. Sometimes one may prefer to pay their mortgages off early. When deciding this, it is wise to consider all the advantages and disadvantages first. Here are several pros and cons of paying your mortgage off early.


Save money on interest

If looking for low-interest rates on the mortgage, it is best to pay it off first. This is because there are small monthly charges to incur. Here, you may choose to pay for the principal amount that should reduce the interest rates.

Own the house right away

Among the main reasons for taking a mortgage is to officially be claimed owner of the house. When one pays their mortgage early, it is possible to achieve this dream. Once a person decides to clear any outstanding fee on the house, they can own it immediately. This also gives you freedom to design the property to fit your tastes.

Freedom to invest more

It is paramount to have total freedom in how you spend and save money. The idea of paying off your mortgage could help achieve financial independence. After clearing a mortgage early, individuals can use some money to invest in other properties.


Lose the mortgage interest relief

When paying a mortgage, there is a tax relief homeowners enjoy. However, if they decide to pay their mortgage before the actual timeline, this may not be possible. This means that they cannot deduct any money from their income taxes.

Lose liquidity

It is vital to access funds whenever one wants to. But, if one decides to clear their mortgage debts early, they might not have a free flow of money as intended. It could limit you from buying more profitable things. Instead of paying off your home loan early, save some resources or purchase other assets.

Final thoughts

When you get a chance to access a mortgage, it is best to consider taking one. Yet, you must be sure of your finances beforehand. You must also weigh all the upsides and downsides of making early payments on your property or properties. Doing this should help you make wiser financial decisions.

Originally published at




Shafqat Dad is a High Wycombe-based entrepreneur and businessman, and he is currently serving as CEO of S Dad Homes. Learn more at!

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium


7 downsides to building a tiny home that no one tells you

Inside the author’s tiny home.


7 Reasons to Work with a Tax Resolution Professional to Resolve Your Back Taxes

How do you fix a credit score of only 400?

@ScruFFuR Investment Disclaimer

The Three Best Bits Of Tax Advice I Ever Got

A man lies on the plant covered ground with his eyes shut and a happy grin on his face. He looks relaxed, he’s not worried about the tax deadline

What Is A “Self-Funding” Real Estate Portfolio?

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Shafqat Dad

Shafqat Dad

Shafqat Dad is a High Wycombe-based entrepreneur and businessman, and he is currently serving as CEO of S Dad Homes. Learn more at!

More from Medium

The Trickle Down Impact Of Struggling Ports

Billionaire insights from David Rubinstein

The Everest Capital Group & K Street Capital Connection:

Quoth the Banker, “Watch Cash Flow”