Should You Pay Down Your Mortgage?!

Thinking about paying down your mortgage? or already paying it down? Think again... I know the feeling of owning a home outright can feel great. But it's not always the best choice. There are many other investments, including more real estate, to put that extra cash into.

Updegrave from CNNmoney.com wrote "My take is that as a purely financial matter, you're probably better off investing the extra $500 a month- given your low mortgage rate.

If you repay your home loan ahead of schedule, you're basically earning 5.25% return, which represents the amount of interest you avoided paying by making the extra payments." I have to agree with Updegrave, in a sense that you could be making more investments in real estate, avoid taxation, while taking advatage of more tax benefits.

You get your benefits of your primary residence, no matter what. If you pay off your home, then what? Usually you sell and move to a retirement location, buying more property. You can avoid "buying" a retirement home by buying a second home now. Tax Free! My clients are all aware of the "secret second home", that I continue to show them tax savings and benefits, legally! Increase your wealth, not your mortgage payment.

-Jerome