The Opportunity Costs of Paying Off Your Mortgage Early
Before setting sights on mortgage zero, consider a few other ways of spending — and growing — your money.
I want to break free.
Photographer: JOSEPH PREZIOSO/AFPThis article is for subscribers only.
The housing market has been on a tear in the last year. New home sales reached a 14-year record, as the pandemic and incredibly low interest rates led to a buying frenzy. The trend is continuing into 2021 with the National Association of Realtors reporting 6.7 million new homes sold in the U.S. January, up 23% from a year ago.
As a new homeowner you may feel both accomplished and overwhelmed. But a six-figure mortgage doesn’t exactly make one feel “rich,” so perhaps you’re leaning into the popular financial advice of paying it down early. But is that always wise?