(720) 962-6700

Join Wambolt Wealth News

(720) 962-6700

Join Wambolt Wealth News

Should I pay off my mortgage?

Most homeowners at some point aspire to own their homes outright. But the math typically does not support paying off a mortgage early. Doing so can deplete your investment account and eliminates mortgage interest deductions.

Does that mean you should never pay off your mortgage early? Not necessarily. Whether to do so typically depends on the shape of your finances, financial goals and emotional attachment to owning a house outright.

Who owns now

Over 29% of American homeowners own their homes free and clear (Zillow) and are free of mortgage payments each month. Seniors have the highest level of homeownership.

The level of homeownership overall is declining, though. Gallup attributes these lower rates to a lack of means rather than a change in attitude about homeownership.













Weigh the pros and cons

The cost/benefit decision is an easy equation.  In its simplest form, and using the same pot of money, if homeowners can make a higher rate of return over several years than their mortgage interest rate, paying off a mortgage doesn’t make sense.

Putting basic pros and cons aside, whether you pay off your mortgage may ultimately come down to your gut or that of your spouse. Often, one spouse may want the security and flexibility of living a mortgage-free life while the other may be either indifferent or opposed to an early payoff.

When there is a stalemate like this, it may be time to pull out the third option – compromise. Strategies here tend to save you money and accelerate mortgage payments so your 30-year loan is satisfied in fewer years.













Paying off or down your mortgage is a financial decision that can trigger financial and deeply personal emotions for homeowners. Schedule time with your Wambolt advisor to assess your options and see what makes the most sense relative to your financial plan.

Follow Wambolt & Associates on LinkedIn
Photo by Scott Webb on Unsplash

This commentary on this website reflects the personal opinions, viewpoints and analyses of the Wambolt & Associates, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Wambolt & Associates or performance returns of any Wambolt & Associates, LLC  Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Our firm manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

Wambolt & Associates provides links for your convenience to websites produced by other providers or industry related material. Accessing websites through links directs you away from our website. Wambolt & Associates is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.

Notice: JavaScript is required for this content.

Notice: JavaScript is required for this content.