Financial planning and asset protection are important for protecting your financial future. Buying a house with a mortgage is one of the biggest financial decisions that you might ever consider. Certainly, there are also situations when you should not pay off a mortgage. Below are situations when you can hold off on paying a mortgage.
Make the Most of HELOC
You can get a Home Equity Line of Credit (HELOC) on your mortgage, and ideally you should separate your equity and HELOC. This will protect you when the price of your home falls. Because the prices of home rise and fall periodically, never put all of your money toward your payments. If you do so, you might end up with a loss when the value of your property goes down.
Manage Risk
If you plan to pay off your mortgage with some extra savings that you have in the bank, think about this strategy again. You can put that money toward any other investment that will generate revenue for you. If you do this, you will have another stream of income. Additionally, you will diversify your portfolio risks.
Hold off Your Mortgage for Estate Planning
You will do your family a big favor if you plan your estate. In other words, you will decide how much your heirs will get from your property and assets. Most young people today want to make their own lives, and they are not really interested in holding onto their parents’ properties. If you think that your heirs will also think along these lines, hold off on your payments. Instead, put your money into a good investment vehicle for your heirs.
Thus, these are some situations when you should not pay off your mortgage. Of course, your personal situation might vary; therefore, consider all of the factors before you make a decision.
