Did you know that paying your mortgage off early or having a 15 year mortgage may not be the best strategy for you?
There is a lot of talk out there by Financial Entertainers that say you should have your mortgage paid off as soon as possible. You’ll be more secure. It’s safer, etc.
Think about it… when you make extra payments on your mortgage you are giving that money to the bank. They get to use it (and by the way make even more money) Let’s say you get sick, lose your job, or something unexpected happens and you need money fast. Can you get that money back out of your house?
You would have to sell your house, refinance it or maybe get a Home Equity Loan.. None of those options are quick. Which means the equity in your house is not liquid. And if it was a job loss that requires you to have money, is the bank going to give you a loan.
But you thought it was your money!! No. It is your equity and your equity is not liquid!
You see that is the misconception . You think you are more secure because your house is paid off – but are you really?
What if what you thought to be true turned out not to be true, when would you want to know?