Most lenders will allow you to pay off your mortgage early.
Owning a mortgage-free home has become a trend. Nearly 40 percent of homeowners own their homes outright, according to the National Association of Home Builders (NAHB). This is the highest it’s been in 13 years. Two-thirds of these mortgage-free homeowners are baby boomers aged 60 and over.
But is paying off a mortgage a wise move? For many, it could offer peace of mind, but there may be some financial ramifications to going mortgage-free. Knowing the pros and cons will help you make the right decision for your circumstances.
Can You Pay Off Your Mortgage?
Most lenders will allow you to pay off your mortgage early. It’s referred to as prepaying a mortgage. These types of mortgages don’t come with a prepayment penalty.