Do you have the cash to pay off your mortgage? Are you wondering about other investment opportunities? Look here for articles, columns, blog posts, radio shows and videos about how to pay off your mortgage and other opportunities.
When your mortgage is sold, where do you send your payment? When mortgage loans are sold, there must be a company that purchases the rights to service the loan. The company that sold the mortgage is required by federal law to tell you who owns the servicing rights to your loan.
When should you update your homeowners insurance? Ilyce encourages homeowners to regularly update insurance to make sure it covers the high cost of rebuilding property. Call your insurance company and have them reassess the property.
When you have extra money is it better to pay off your mortgage or invest the money? It depends on the type of the mortgage loan and the interest rate on the mortgage loan. Paying off a mortgage may also depend on what stage of life you're in - whether you're still working or in retirement. In this case, Ilyce suggests waiting to pay off the mortgage loan because of its low interest rate.
When a person dies, all of the assets in an estate would typically be sold, and that cash would be used to pay off the person's creditors. Any financial assets in the estate would also be liquidated to pay off any remaining debt. If there is anything left in the estate after the debts have been repaid, it would be distributed according to the terms of the will.
A homeowner is thinking about paying off his mortgage before he retires later in the year. Refinancing the mortgage would be better due to the large tax bill he would have to pay to remove money from his retirement account. A fee-only financial planner can help work out how to best pay off the mortgage and discuss the impact of the interest deduction on his income taxes by keeping the loan, the costs in terms of income taxes paid by him for withdrawing the money from the pension plan, and planning for his retirement.
Always read and understand all your mortgage closing documents. Even if you're not aware that your mortgage has a prepayment penalty, if you sign the loan documents you're responsible to pay it. A prepayment penalty can kick in when you sell your home or when you refinance - whenever you pay off your old mortgage loan.
Sometimes you may feel you no longer want to make your mortgage payments and just pay off your mortgage with other assets such as money in an IRA or 401(k) plan. But is it a good idea to pay off a mortgage with retirement money? If you're under 59 1/2, you'll have to pay extra taxes on the money that you withdraw from your IRA or 401(k).
What do you do if you pay off your mortgage, but there is still a lien on your home? If the mortgage company you bought the loan from is no longer in existence, there is still a way to get the lien off your house and prove you paid off the mortgage. Ilyce suggests that a local title company may be able to track down the mortgage company and get the lien off of the house.
Is it best to pay off a mortgage or invest the money for retirement? How should you invest a large amount of money to get the most value from the cash? To make the best decision for your personal finances, you need to plan how to use the money. Spend some time figuring out how much cash you'll have in retirement. Next, look at the expenses you have going forward. Figure out how long it will take you to pay off your house completely. With this research you'll be able to determine where to put your cash.