What Are the Key Disadvantages of Having Your Mortgage Loan Paid Early?

There are two sides of the debate over whether one should have paid his mortgage in advance or otherwise. Some strongly support the idea of having one of the mortgage loans paid out as soon as possible, while some are really against this idea. So whose argument is right and what are the reasons? Before any decision of the sound is made, it is worth while to weigh their pros and cons. Add below are some of the strong case shared by those who are against the idea of paying the mortgage early, A. Of 'INTEREST' on mortgage loan is responsible for the tax deduction for the year to be paid. In addition, much of the monthly mortgage payments in the early years is of interest. A homeowner would have the effect of reducing costs recruitment through the grant of tax reduction. However, this advantage would be lost if the mortgage is paid first. B. Some financial advisers say it is better to keep your monthly mortgage payments regularly, and invest the money in more than elsewhere, can stem a higher profit in return, instead of downloading the mortgage for the reduction of capital. There might be some good program of short-term investment by a financial institution, or it may be the model for a business that are anxious to get started. C. It could seize the great opportunities of investment and to earn money from mutual funds or through retirement accounts, like 401 (k) and other, if one is to "lock" all the money for mortgage payment and not in any of these mutual funds or investment programs in the long term. d. In addition, it makes sense to complete the keeping extra money in liquid form, rather than pouring all in the repayment schedule of loans. You will not be good 'liquidity' position until the mortgage is eliminated completely off and have the house sold. Keep the money in liquid form would be the best and is also very useful especially if you need to access the money quickly in case of emergency. e. With the rising rate of inflation every year, you paid $ 1000 for the monthly payment for a mortgage today might just value of $ 800 ten years from now, when adjusted for inflation. Based on this theory and logic, it seems logical "use" the extra money for other uses of sound to be more favorable to download the plan for the mortgage. So if you should or should not pay the mortgage is the start of an option which should be conducted after the basic considerations and thorough assessment of your current financial situation and the long-term goals.