Faith, Ledyard & Faith, PLC
COVID-19 NOTIFICATION: To protect your safety and the safety of our staff, in response to the threat of COVID-19, we are offering the option to connect with us via telephone, email and video-conferencing. Our staff are fully operational. Please call or email us to discuss your options.
A Full-Service Law Firm Serving the West Valley and Greater Phoenix for More Than 40 Years
PA Image
Real Estate Law
PA Image
Personal Injury
PA Image
Civil Litigation
Construction Law
PA Image
Bankruptcy
PA Image
Employment Law
PA Image
Estate Planning
PA Image
Debt Collection
PA Image
Government Law
PA Image
Criminal Defense
PA Image
Business And
Commercial Law
PA Image
En Español

Pay off your mortgage or make an investment?

| Sep 22, 2017 | Real Estate Transactions |

Many people dream of paying off their mortgage in full so that they can start to enjoy a debt-free life where they don’t have to worry about making repayments every month. They even go so far as to make repayments that are above and beyond what they need to repay. But what if they were told that in doing this, they were investing poorly in their future?

This is a controversial debate and there are arguments for both sides. This blog will provide overview of the two sides of the debate to help you to decide how you should invest your money.

Evaluating your situation

Whether to repay your mortgage or whether to invest that money into another property can be decided by taking into account your specific situation. The interest on your current mortgage, the anticipated increase in value that your home is set to gain, the predicted investment return, and the value of your home currently are factors that need to be taken into consideration.

Paying off your mortgage

If you want to mitigate risk and feel more comfortable making a safe investment, it is advisable to pay off your mortgage as soon as possible. It also makes sense if you have a high interest rate on your current mortgage, or if you are in a low tax bracket.

Investing in more property

If you are 50 or younger and your interest rate is fixed, it is likely that you are making a better investment by putting your money into more property. If you have any questions about investing in property, it is a good idea to speak to a trusted legal advisor who can offer you guidance.

Source: Nerd wallet, “Invest or pay off mortgage?,” accessed Sep. 22, 2017

Lead Counsel Rated LC
Certified specialist | State bar of Arizona | Real Estate | Law Specialist
Distinguished AV | Peer Review Rated | LexisNexis Martindale-Hubbell | For Ethical Standards & Legal Ability
Martindale Hubbell AV Preeminent peer rated for highest level of professional Excellence 2020
Expertise Best Real Estate Layers in Phoenix 2020
FindLaw Network

Stay Connected With Us