You might know someone who paid off their mortgage early, and you are questioning if you should do the same. In making the decision, you should consider your overall financial situation, risk tolerance and long-term goals.
Paying off your mortgage early has benefits, like allowing you to build home equity more quickly, which can be beneficial if you need to access funds in the future. It also offers financial freedom, potential interest savings and peace of mind.
Early payment of your mortgage also has drawbacks. For instance, the money used for prepayment could yield higher returns if invested elsewhere, especially in a strong market. Other drawbacks include liquidity concerns and potential lost tax benefits and prepayment penalties.
If you’re considering this decision, it might be beneficial to speak with a financial advisor.
F&M Trust’s Wealth Management team strives to provide practical advice, and we continue to build relationships and solve complex problems for our clients. Helping you to protect your investments so you have something to pass on is our job.
F&M Trust also provides a full range of trustee services, from financial powers of attorney to guardianships and special needs trusts.
Give us a call or stop into a nearby location. Our website also offers a wealth of information about investing based on where you are in your life’s journey. Learn more about how we have been defining what it means to be a community bank for more than 115 years at fmtrust.bank.
Corporate
1500 Nitterhouse Dr, Chambersburg, PA
Regional
4050 Crums Mill Rd, Harrisburg, PA
