Mitchell Thompson, CFB wrote a very interesting article in Investopedia. For decades the American Dream has been to own a home and work towards paying off the mortgage to be debt-free.
With mortgage interest rates today at historic lows, there is a strong argument to be made that mortgage debt can free-up your money for other things. As a simple example, most people are better off paying down other consumer loans before concentrating on their mortgage.
Likewise, borrowing more for upgrades may be a very powerful investment in your future.
Examples of upgrades with long-term $$$ benefits
- Longer-lasting materials including thicker roofing shingles, better flooring or countertops may last as long as you own your home and avoid replacement costs in the future for you.
- Added insulation can lower your energy bill for the life of your home. Remember – every $1 you spend on your energy bill is MORE than $1 you need in income before taxes!
- Universal design features such as wider doorways, walk-in showers, grab bars and more make it so you can live better in your home today and allow you to live in your home longer.
Powerful stuff to think about!
Here is a link to the article:
“Why You Shouldn’t Pay Off Your Mortgage”
Of course, for financial advice, talk to a professional. If you don’t know one, contact us and we can tell you more about a very competent advisor.
