Should You Pay Off Your Mortgage Early?

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I hope you had a wonderful weekend! Welcome to March Madness!

LRPC’s Monday Morning Minute for this week, “Should You Pay Off Your Mortgage Early?” (presented below) comes to you courtesy of Charles Schwab & Co. As an independent, objective Registered Investment Advisory firm, Lawton Retirement Plan Consultants, LLC has access to research from many sources. Be assured that I will share enlightening, useful information with you each week.

Many of you may have thought about this issue and wondered about the right course of action. Schwab provides some helpful insights below.

Have a wonderful week!

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Should You Pay Off Your Mortgage Early?

From Charles Schwab & Co.

Some people enjoy the peace of mind that comes with being debt-free in retirement. But warm and fuzzy feelings should be weighed against solid financial facts. Whether it makes sense to pay off your mortgage when — or before — you retire depends on your individual situation.

The interest rate on your mortgage may be the single biggest factor in this decision, according to Rande Spiegelman, vice president of financial planning at the Schwab Center for Financial Research. “If the rate on the mortgage is low, an early mortgage payoff might not be the best option,” he says. “It may be better to maintain liquidity of your funds and diversify your assets.”

Should you pay or stay? Rande says you should consider these factors when deciding whether to retire your mortgage or keep it: [Read more…]