If you are about 45 years old or older and don’t think you will ever relocate to another home, make a serious effort toward paying off your mortgage. The best financial security move you can make is to get your mortgage paid off before you reach retirement. Just tune out the people who say it doesn’t make sense to give up the valuable tax break that comes with a mortgage-interest deduction.
Mortgage Interest Deductions Disappear
Most of the interest deductions happen in the early years anyway. Let’s say you have a $200,000, 30-year fixed-rate mortgage at 6 percent. Your monthly payment will be $1,199 a month—or about $14,400 a year—for 30 years. In the early years of the mortgage, you’ll pay mostly interest—at least $11,000 a year—so $11,000 of your $14,400 mortgage payment will be tax deductible. Now let’s jump ahead 20 years: Your annual mortgage payment is still $14,400, but the interest portion of the payment will not be more than about $6,000. The bottom line is that your interest tax deductions decrease the longer you pay your mortgage. But we’re not talking just about a tax write-off here: Nothing feels better than owning your home outright.
Look at it another way: your mortgage is probably your largest monthly expense—so, if you get it paid off before you retire, you will have reduced the amount of money on which you’ll need to live during retirement. Cool!
“Thousands of homeowners use this system and save a huge amount of money on their mortgage, Don’t be left out. Let me send you this powerful information. You’ll be glad you did.”
Marv Eisen – Mortgage Magic System