Paying off your home
Paying your mortgage off can be a way of investing in your future. Especially if you have a house with a basement apartment which can potentially be rented out.
Think of it as a forced savings plan. You have to pay your mortgage every month or else you will lose your home. When it’s all paid off, and you are ready to retire, you will not have to make mortgage payments, and will be able to collect monthly rent from tenants if you have them. This can make a huge difference on the amount of money that you need.
Do you know how much your motgage is costing you? When your mortgage is all paid of, if you wait the full 25 years (depending on interest) you will have paid over 3 times the amount that you actually bought the house for. This is because of the effects of compounding interest over time. That’s why it’s so important to make extra payments, expecially in the first few years of your mortgage term.