People have quite different answers to this question. Most mortgages are issued with prepayment penalties, known as prepayment. The penalty is usually about 80% of 6 months interest. If to take the calculations as to this problem into consideration you should not pay off your mortgage earlier.
Of course, you can do that increasing your monthly payments. Still, you can invest this money instead. The simple math shows that money used for covering higher payments to your mortgage can be invested in stock. Such financial step can bring you more than 7% on average over the period.
Also, there is a possibility to take on the federal taxes in your home mortgage interest deduction. This is the second great advantage of not covering your mortgage sooner.
But you may decide to get rid of the debt, so emotional part of the problem can play more significant role. Make your own decision based on your financial possibilities and plans. The best option, however, to initially apply for the home loan without “prepayment” if you consider covering it earlier.
Study the following information to make the right choice:
Mortgage loans through Personal Money Service.