Should I pay off my mortgage?

Question

I have been given enough money to pay off my mortgage - should I or, given the current climate, would it be wiser to invest some and save some?

Answer 1

PAY OFF THE MORTGAGE.

After that is done. Take the amount you were paying on the mortgage and start investing that.

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Answer 2

I am in a similar situation.It is always more expensive to get  a loan.So if you have any idea where to invest keep paying the morgage.I think about putting my money into saving account abroad.I will have about 3-5%profit.Not too bad if it is 200000.That will make you up to 10000 pounds.  

Answer 3

I do not understand why most people said don't rush to pay off your mortgage. If you borrow 100k, you would pay like 200-250k. That's a waste of money to me. I would pay off if I can afford. Keep in mind you should have some $ left for emergency use.

Some people invest in another property especially the house pricing is much lower. And you could make a good profit when the economy recover. It's quite a gamble doing this.

Answer 4

Pay off your mortgage while you have the oportunity!

Answer 5

I think you should pay of your mortgage. This will then open up doors for you because once the mortgage is paid off you can treat yourself and not worry about the mortgage bills coming through the door.

I'd pay off my mortage but then again you might have reasons not to.

Good luck x

Answer 6

Clear you debt as long as you don't get penalised

Answer 7

As long as there are no penalties, pay off your mortgage then save the monthly amount you would have been paying. This way you have the best of both worlds!  

Answer 8

yes, you're paying a lot of interest on your mortgage and when you own your house you are set up for life, you dont have to work so hard if you dont want to, and it's not easy to have it taken away from you.

Answer 9

lucky you !

idk - I would pay it off - but depends on how much you owe and the terms etc. would you save anything by paying all off now ?

Answer 10

If you are a wage earner, it is better to pay off your mortgage. But if you are doing some sort of business, it is better to put aside some money either for additional working capital or  to set up a contingency fund in case you have some good investment to go into. Discuss with your banker and tell them to restructure your existing mortgage into part half term loan and half overdraft acount. This way have an overdraft acount to make use of in case you need it for business or for investment purposes. For overdraft accounts you need only to pay interest when you use the overdraft limit.  

Answer 11

As a general principle you should pay off your mortage (and any other debts) as soon as possible. This avoids paying more interest on top of what you've already paid. In my opinion, paying interest is just like pouring money down the drain, but of course the banks don't see it that way -- they make their money from people in debt. ;-)

If your mortgage has an early redemption penalty, as some do, you need to see if it will cost more to pay it off or to let it run. Generally if your mortgage only has a year or two to run, it's best to leave it to mature naturally. But if it has a long time to run, pay it off as soon as you can.

It's always better to pay off your debts than to invest the money to service the debt. This is because the interest rate you pay on a debt is going to be higher than the interest you'll be paid on a savings account or other sorts of low-risk investment.