| How quickly can I pay off my loan if I make extra payments? |
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| Enter the Terms of Your Current Loan |
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| Enter the Amount of the Monthly Pre-Payment Towards Principal |
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While it's a great idea to want to invest your money to eliminate debt and create greater equity, paying off
your loan early is only one of many available options. As well, since for most people there is a tax benefit
that comes with servicing a mortgage loan, the real net rate of return from principal pre-payment is usually
on the lower end of the spectrum for historical performance. It is safe, it is predictable and thus, has its merits,
yet it also puts your money into one of the hardest, most expensive or disruptive places to get it back from
should the need suddenly arise. In other words, you have to sell or refinance your home to retrieve your equity
and that can be one of the hardest things to do when you need the money most. Hence, it's always worth
looking at all options and consulting with an expert before making investment decisions. I'm always happy
to speak with you and whenever needed , will be happy to refer you to the appropriate professionals.
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