Should You Pay Off Your Mortgage As Quickly As You Can?

Should You Pay Off Your Mortgage As Quickly As You Can

If you’re buying a condo for sale in DTLA and getting a 30-year, fixed-rate mortgage, it feels like it makes sense to pay it off as quickly as possible.

But is that the right choice?

Not always. Here’s what you need to know.

Should You Pay Off Your Mortgage As Quickly As You Can?

If you’re like most people, you have a decent interest rate on your mortgage. But it still feels like you’ll save thousands of dollars in interest if you pay it off early.

However, there are two things to consider if you’re thinking of going that route:

  • Your mortgage loan might have an early payment penalty. That means if you pay off your loan before the last payment is actually due, your lender might assess you a special fee – and you could lose a lot of what you gained.
  • The “extra” money you wanted to use to pay down your mortgage might better serve you if you invest it in other ways. You could also just stash it away in savings, and if you feel like it later down the road, you can use the lump sum to make a big mortgage payment. It’s important to stay liquid, most financial experts agree, so having that money in a separate fund can come in really handy.

Are You Buying a Loft or Condo  for Sale in DTLA?

Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.

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