1) The Benefits of Paying Off Your Mortgage Before Retirement.
2) Benefits Of Paying Off Car Loan - Auto Loan Financing
3) The Benefits of Mortgage Repayment | Investopedia

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benefits of paying off mortgage faster

If you can afford it, it might be simple to pay off your mortgage earlier. But should you? That's a complicated question.

For many people, their mortgage carries an interest rate that's lower than they could average in retirement or investment accounts. And that means the "extra" money you could throw at a mortgage might earn more elsewhere.

With a low mortgage interest rate, homeowners are "so much better off putting that money in a Roth IRA," says Jill Gianola, certified financial planner and author of "The Young Couple's Guide to Growing Rich Together."

John Diether has been a professional writer, editor, and producer since 1997. His work can be found on TV, radio, web, and various publications throughout the world.  He is a graduate of Northwestern University and has a 1992 Cadillac Brougham d’Elegance in his garage. 

Thinking about paying off your car loan ahead of time? While that's easier said than done, early payoff carries some serious financial benefits for you. For most borrowers, it's the smart thing to do.

The most obvious reason to pay off your loan early is to pay less interest. What you pay in interest each month is based on your outstanding balance. The less you owe, the lower the interest charge will be. You don't have to pay off the loan completely to get this benefit. You can start saving immediately by making an extra principal payment each month.

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No matter how much we dislike debt, most people achieve home ownership with the help of a mortgage. While it may be necessary to get your foot in the home ownership door, paying off a mortgage as soon as possible has many financial benefits, including saving thousands of dollars in interest payments.

If  you want to pay down your mortgage faster, start by reviewing your papers and noting whether there is a mortgage prepayment penalty . If so, identify in which cases you have to pay it and how it is calculated.

As of 2007, about a third of all owner-occupied homes were owned mortgage-free, according to Census records. Although there are reasons you would not want to pay off your mortgage early, such as to keep cash on hand for emergencies and to make sure your money is in diversified investments, there are also plenty of reasons to justify paying off this significant debt. Before deciding on a course of action, weigh the advantages and disadvantages relative to your financial and personal goals.

Some people just sleep better knowing their home is paid off. They could lose their jobs, face a major illness or be forced to reduce their work hours, but they wouldn't have to worry about having a roof over their head. Although there are other costs associated with owning a house--property taxes, maintenance and insurance to name a few--the major bill most homeowners pay is their mortgage. Once that's paid off, there is much less to worry about.

On a typical 30-year fixed-rate mortgage, you pay just about as much in interest over the course of the loan as you do in principal. The earlier you pay off the principal, the more you save on interest payments. On a $300,000 loan at 5.5 percent, if you make just one extra mortgage payment a year, you will shorten your loan term by five years and save about $60,000 in interest charges.

Q: In a recent column you suggested paying off a mortgage. Of course, if the desired effect is peace of mind, I would agree. Many people would be well-served to pay off their mortgage. However, I am always amazed at the thinking process in calculating, for example, a 6.8 percent interest rate with regard to tax savings and possible earnings from other investments.

Anyone who has looked at an amortization schedule would immediately see that one pays much more than 6.8 percent at the beginning of the loan and much less than 6.8 percent toward the end. Taking that into account, how can you advise homeowners to pay off those late-stage mortgages? It would be easy to earn a higher interest rate on the money that would be used to pay off the mortgage. -- S.S., Seattle

A: Many readers sent similar questions, so let's take a close look at home mortgages and understand them a little better.

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In today's economy, many citizens are struggling to keep up with their mortgages and doing whatever they can to stay on top of their mortgage payments every month to avoid foreclosure . For many citizens, paying off their mortgages is not only a goal but a dream. Paying off your mortgage has many advantages that can positively impact your finances as well as your quality of life.

Flexibility in Your Monthly Budget
Once you pay off your mortgage you will have extra breathing room in your monthly budget. If you were struggling to pay bills before your mortgage was paid off you will be able to redistribute the money you would have paid on your mortgage towards high utility bills, household expenses or another expense that would have left you strapped for cash before your mortgage was paid off. Paying off your mortgage creates flexibility in your budget and makes it easier to keep your family afloat .

Protection Against an Unstable Housing Market
A major concern for many citizens is whether or not they will be able to keep up with their mortgage costs in an unstable housing market. A definite benefit for homeowners who pay off their mortgage is that they will be protected from losing their home due to financial insecurity in a rough economy.

There are several benefits you can enjoy from paying off your mortgage earlier than previously scheduled. Here are four of those benefits.

Paying off your mortgage early is a great way to save money and start building a nest egg that can last for years. If you do it the smart way, paying off your mortgage could be the smartest financial move you will ever make. Here are four common benefits of paying off your house months or even years before you are scheduled to do so.

1.     Guaranteed Return – Paying off your mortgage is guaranteed to bring a great return to you. If you plan on staying in your home for several more years, it will appreciate in value which is always an easy way to save money. If you have money that you are uncomfortable investing in riskier investments like stocks, putting it towards your mortgage is a great and secure way to invest that money.

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Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, U.S. Bank, and Barclaycard, among others.

No matter how much we dislike debt, most people achieve home ownership with the help of a mortgage. While it may be necessary to get your foot in the home ownership door, paying off a mortgage as soon as possible has many financial benefits, including saving thousands of dollars in interest payments.

If  you want to pay down your mortgage faster, start by reviewing your papers and noting whether there is a mortgage prepayment penalty . If so, identify in which cases you have to pay it and how it is calculated.