4 Reasons You Shouldn’t Pay Off Your Knoxville Mortgage Early
Should you pay off your Knoxville mortgage early?
Many homeowners may think that the answer is an automatic yes. But, that is not always the case.
The decision to pay off your Knoxville mortgage early is largely dependent on your personal situation. Sometimes it makes sense and sometimes it doesn’t.
In this post, we’ll look at 4 reasons you should pay off your Knoxville mortgage.
Most Buyers Don’t Stay Long Enough To Make It Worth It
Most buyers plan to stay in their home 13 years, according to data from the NAHB. Oftentimes, home buyers will stay in a home for less time than that. This is why paying off your Knoxville mortgage early doesn’t make sense for many homeowners. They don’t stay in the home long enough to make it worthwhile.
Unless you plan on staying in a home for 30 years or an extended amount of time, it doesn’t always make sense to pay off your mortgage early. If your monthly mortgage payment is manageable, there is nothing wrong with just making your monthly payments.
If you do plan on staying in your home, it can make sense to pay off your mortgage early. You’ll avoid paying all of the interest on your home, which can add up quickly.
That Money Could Be Better Spent Elsewhere
If you’re like most homeowners, you put a significant portion of your income towards your monthly mortgage payment. It can sometimes be hard to think about putting more income towards your monthly mortgage payment. Oftentimes that money can be put to better use elsewhere, which is why paying off your mortgage early doesn’t make sense for many homeowners.
When you pay off your mortgage early, you’re cutting significant income from going other places. You’ll want to determine if that income is better going towards other investments that will see a return. Sure, when you pay off your mortgage you’ll no longer have to make that payment. But, in that time, you’re not putting money towards other investments that could be growing.
You’ll Lose Critical Tax Deductions
As a homeowner, you are able to get many important tax deductions. Once you’ve paid off your mortgage, you’re no longer able to get many of these deductions. Before you consider paying off your Knoxville mortgage early, you’ll want to think about if you want to give up these deductions.
As a homeowner, you’re able to write off the following deductions on your taxes:
- Mortgage interest
Before you consider paying off your mortgage early, it’s worth considering whether or not you want to give up certain tax deductions.
The Investment Isn’t Easily Accessible
Finally, when you pay off your Knoxville mortgage early, it’s not always an investment that is easily accessible. In order to access the money invested in your house you either need to refinance or sell your home, for many buyers, that’s a lot of effort.
If you’re not someone who plans to live in the house for a long period, your money can be better spent elsewhere where you can easily access if you need it. Or, put in a place where it has the chance to grow.
Are you interested in buying a Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be contacted at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com. Also, be sure to check out our Knoxville home search page to see what homes are for sale in the area.