Pros and cons of prepaying mortgage

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If you own your home and/or investment property, especially if you are nearing retirement years and want to enjoy your properties with no monthly mortgage payments to make, your first thought might be prepaying the current mortgage. For example, if you have a 7 percent home mortgage interest rate and you make an extra $100 principal payment this month, you really invested your $100 at 7 percent because you won't have to pay any more interest on that borrowed $100. Your investment "earnings" from prepaying mortgage principal come in the form of future interest savings over the remaining life of that mortgage. In other words, you will avoid paying interest on the $100 of that mortgage principal this year, next year and every year in the future. Purchase Bob Bruss reports online. In addition to the obvious interest savings, here are the important things to consider about prepaying an existing mortgage: 1. Unless you plan to keep a property at least 10 years, prepaying part of the mort...