Monday, February 14, 2005

Should I Pay Down My Mortgage Or Refinance?

Giving careful thought to paying down your mortgage is crucial to retaining your home, seeing a return on investments and financial survival. Whether you should or shouldn't is another story. There are some key factors to consider.

It goes with out saying that not paying down your mortgage would leave you with a larger debt burden over time. The issue is whether to take retain this debt or not. Still when refinancing aren't you taking on more debt?

it's not a matter of taking on more debt. Once the mortgage exists, the question then becomes whether we can pay it off early and save or reduce the overall amount of the loan by refinancing and save.

Would paying off the mortgage at a more rapid rate reduce your debt burden? Perhaps, but can you afford to make extra payments to accomplish this? If money is scarce than the alternative might be lowering the rate by refinancing first and then paying down the mortgage debt.

Once the mortgage rate is reduced commense paying down at a more rapid rate. Use the extra funds saved to improve your investment portfolio.