Apr
17

Is Paying Off the Mortgage on Your Chicago New Home First Still Best?

April 17, 2013

Chicago new home mortgageMaking the last payment on your mortgage has been a financial goal for many, but is getting to that dream as quickly as possible the best use of your funds? A new article from the Chicago Tribune and Kiplinger’s suggests there are other places to invest that can give you better financial health overall, especially if you have one of the current low interest rates.

For instance, you can spend more on projects like these while still making regular payments on your Chicago home:

  • Pay off consumer debt – especially if you have one of the lower interest rates, cutting down your consumer debt should be one of your top priorities. Consumer debt generally has a higher interest rate, so it is harder to pay off and having too much of it hurts your credit score.
  • Fuel retirement funds – building for the future is key, and if you aren’t maximizing your retirement options, you are setting yourself up for a difficult future even if you do pay off your mortgage. Set aside as much as you can in 401(k) and IRA options, especially toward later years when the limits are higher. And whatever you do, don’t pull money out of your retirement savings to squeeze an extra mortgage payment out.
  • Build an emergency fund –a six month living fund for emergencies, from losing your job to dealing with costly emergencies, can protect you from being driven to debt by unforeseen problems. It can also keep you from being late on your mortgage payments, suffering penalties or drawing money out of your retirement funds, which can do even more damage to those investments.

 

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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