Prepaying Your Mortgage | Pro's & Con's You Should Know (UPDATED)

➡ Sign Up For Bankrate Dashboard (It's Free) - www.bankrate.com/sign-up/?utm_source=youtube&utm_m… Prepaying your mortgage involves paying down your loan principal faster than scheduled. If you choose to pre pay your mortgage, there are advantages and disadvantages that you should know about. In the pro's column, it does potentially mean that you will end up paying quite a bit less in interest over the life of the loan. Even more, by paying down your mortgage faster, you free up cash for the future that you can invest, spend, etc. One downside, however, to paying off your mortgage early is that you are technically using money right now that could be invested. If, for example, you have an interest rate on your loan of 3%, it might actually be a better use of your money to invest elsewhere if you think the returns would be higher than 3%. Over the long term, the stock market has returned between 7% and 10%. As with anything, making extra payments on your mortgage and paying it offer early does come with upsides and downsides. We have a full guide on our site that discusses the various payment options, ranging from making 13 payments per year to an extra $100 down each month. Video Host - Mike Adams:    / @thinkwealthy   ▬ HELPFUL RESOURCES ▬ Prepaying Your Mortgage: www.bankrate.com/mortgages/prepaying-your-mortgage… Today's Refinance Rates (Updated): www.bankrate.com/mortgages/refinance-rates/?utm_so… Mortgage Refinancing Calculator: www.bankrate.com/calculators/mortgages/refinance-c… Where Are Rates Trending? www.bankrate.com/mortgages/rate-trends/?utm_source… How Much House Can I Afford? www.bankrate.com/calculators/mortgages/new-house-c… How To Pay Off Your Mortgage Early: www.bankrate.com/mortgages/how-to-pay-off-your-mor… ▬ CONNECT ▬ Website: www.bankrate.com/?utm_source=youtube&utm_medium=vi… Facebook: www.facebook.com/bankrate Twitter: twitter.com/bankrate Instagram: www.instagram.com/bankrate ▬ TIME STAMPS ▬ 0:00 - Video Overview 1:07 - What is "Prepayment"? 1:40 - Prepayment Methods 2:08 - How Much You Can Save 4:16 - Drawbacks of Prepaying 6:30 - What To Know Before Prepaying 8:20 - Final Note ▬ CREDITS ▬ Much of the footage in this video has been provided by Storyblocks and Getty Images.

• #news_politics
• #prepaying_mortgage
• #prepay_mortgage
• #how_to_prepay_mortgage
• #mortgage_prepayment
• #paying_off_mortgage_early
• #pay_off_mortgage_early
• #mortgage_prepay
• #pre_pay_mortgage
• #bankrate