Should You Pay Off Your Mortgage Early? Pros and Cons

You open your monthly mortgage statement one morning and nearly spit out your coffee — your loan balance reads zero. It’s a familiar daydream that also feels like a distant fantasy to many homeowners who have a home loan.

If you discover extra funds in your budget, you could experience the sensation of a mortgage-free life sooner than you planned.

Whether you recently landed a pay bump or inherited a tidy sum, putting additional cash toward your principal mortgage balance can help you pay off your mortgage early. But is paying off your mortgage loan the best financial strategy? Some financial experts argue that mortgage debt could be considered “good debt.”

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Should I pay off my mortgage?

In certain situations, it could be better to hold on to your mortgage and make regular payments as scheduled. In other instances, paying down your loan and eliminating your mortgage early could give you a boost to explore other financial options.

Figuring out the best way to channel your extra cash boils down to your personal situation. The decision hinges on both your financial profile and your philosophy about whether the extra money could be put to better use elsewhere.

To walk us through the ins and outs of mortgage payments, we spoke with two industry leaders who know a thing or two about mortgages:

• Chloé Moore, an Atlanta-based certified financial planner (CFP®) ranked as one of the 100 top financial advisors in 2023 by Investopedia
• Arkansas real estate agent Tara Limbird, whose team landed on the Wall Street Journal’s list of top real estate firms in the U.S

Here’s what you need to know before diverting extra funds to your home loan and paying it off early.