Paying off your Boca Raton mortgage all at once definitely has its own perks, the biggest one being the sole outright owner of your house. However, it is not always the wisest thing to do and you should always look at all other possible factors that would be affected by the decision. So before you decide to pay off your mortgage right now, here are four questions you should answer:
1. Will You Have Enough Cash to Pay the Bills?
The most important thing you should consider is the state of your liquidity once you have paid off the Boca Raton mortgage in full. While you will be rid of huge interest payments, you have to consider if you will have enough liquid assets remaining with you after making the mortgage payment.
2. Can Your Money Go To Better Investments?
If you have enough cash at hand to pay off your entire mortgage, you shouldn’t necessarily rush to do it. A house is not always a wise investment, especially at times of inflation. So, you should see if you can use your money to make better investments that will pay off in the long-term in a much better way.
3. Is Refinancing an Option?
Another option that you should consider if you want to pay off your mortgage is to refinance. Compared to mortgage rates in 1971, the rates are almost half today. Therefore, going for Boca Raton refinance would mean a substantial cut in your interest payments while allowing you to select a more flexible mortgage payment plan.
4. Can You Afford to Give Up the Tax Deductions on Interest?
Interest payments up to $1 million made on Boca Raton mortgage are tax deductible. If you pay off your mortgage at once, you will no longer be eligible for these deductions. Therefore, before paying off your mortgage, make sure you have checked your tax savings for the past few years.
If you are looking to refinance your South Florida home, Choice Mortgage Bank in Florida offers you a completely transparent and convenient way of selecting the right option. When getting a mortgage or refinance from CMB, you can understand your application status every step of the way.