cash that may make sense for your financial situation. However, the wisdom
of making this financial move isn’t as clear as paying off high-interest consumer debt; mortgage interest rates are generally lower, and the interest is
typically tax-deductible. When used properly, debt can help you accomplish
your goals — such as buying a home or starting a business — and make you
money in the long run. Borrowing to buy a home generally makes sense. Over
the long term, homes generally appreciate in value.
If your financial situation has changed or improved since you first needed to
borrow mortgage money, you need to reconsider how much mortgage debt
you need or want. Even if your income hasn’t escalated or you haven’t inherited vast wealth, your frugality may allow you to pay down some of your debt
sooner than the lender requires. Whether paying down your debt sooner
makes sense for you depends on a number of factors, including your other
investment options and goals.
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