Should You Pay Your Mortgage Off Early?

Most people long for a time when they are debt free. It sometimes seems unimaginable to pay off a mortgage in less than 20 or 30 years—but it may be easier than you think. By simply making bi-weekly payments instead of monthly, or by adding more to your mortgage payment each month, you can shave years off your loan.

This may be an easy way to pay off your home early, but it doesn’t mean that it’s a good idea. Before you start accelerating your mortgage repayment, ask yourself the following questions.

  • How expensive is your mortgage compared to other debt? If your annual interest charges for your mortgage are lower than the interest you pay on other debts, it might be a better idea to pay off those other debts first. You can then roll all the savings into your mortgage payment and pay it off even faster.
  • Are you getting any tax deductions for the interest? Mortgage interest is often deductible, which means it’s reducing your overall tax burden. If you take these deductions, then find out how paying off the mortgage would impact your taxes.
  • Do you plan to sell the house in the next five years? If you’re planning on selling your home soon, you could instead put the money you would have used on the extra mortgage payments toward the down payment for the new home.
  • Could you earn more on the money than you are paying in interest on an after-tax basis? For example, if you are paying 4% interest on your mortgage and are in the 25% tax bracket, your after-tax interest equivalent is 3% (25% less than 4%). Many investment vehicles can offer a yield greater 3% so it is possible that your money could be put to better use by investing it rather than paying off your mortgage sooner.
  • Do you have any emergency savings? If you don’t have 6 months worth of expenses saved, then paying off your mortgage early is not a priority. When you’re just one or two paychecks away from being unable to pay your bills, you face the very real possibility of losing your home in a crisis. Instead, focus on building that emergency savings first.
  • Are you maxing out your retirement savings? When an employer matches a portion of your 401(k) contributions, it’s like getting free money that grows and compounds on a tax-deferred basis. This could very easily add up to more money than what you spend on mortgage interest.

At Kramer Wealth Managers, we understand that paying off your mortgage early can be a good step—but we also know that it isn’t right for everyone. Contact us today so we can develop a plan that helps you get on your ideal WealthPath.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Since joining Kramer Wealth Managers in 2021, Adrianna Rocha has been a client service dynamo, ensuring every client interaction is seamless and delightful. She’s the go-to guru for all things client experience, handling everything from videophone chats to scheduling meetings and processing forms with a smile. Her goal? To make sure every client feels valued and well-cared-for.

Adrianna graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017 and brings nearly a decade of customer service experience to our team. She thrives on personal connections, celebrating both her achievements and those of our clients. When she’s not busy at work, you might find her indulging in her passions—dogs, houseplants, essential oils, and the tantalizing flavors of Mexican cuisine. Proud fur-mama to her adorable Aussie mix, Ziva. Adrianna brings a touch of warmth and enthusiasm to everything she does.

Q: What’s your favorite part of working with clients?

A:  I enjoy client service because it allows me to help people and make a positive impact. Using my listening skills to understand client needs and solve problems is satisfying. I love turning negative experiences positive and the daily variety of challenges.

Adrianna is not registered with Osaic Wealth.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.

Jack Morley

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
240-379-6909 FAX
info@kramerwealth.com

Jack Morley has been a vital part of the Kramer Wealth Managers team since 2010, starting with various projects and officially joining full-time in 2013. As our go-to Account Service Specialist, Jack is the friendly face and reliable voice who ensures a smooth client experience. He’s the linchpin in client communications, handling account maintenance and bridging connections between clients and our advisory team.

A 1998 graduate of Gallaudet University with a BA in Psychology, Jack brings a wealth of customer service experience from retail and human services. His handyman skills are a bonus, making him the resident problem-solver and DIY enthusiast. Outside the office, Jack enjoys long walks with his dog Bailey.

Married for 25 years to his wonderful wife, Monica, Jack is also the devoted dad to two dynamic daughters who keep him on his toes. When he’s not walking Bailey—he’s likely tinkering on a new project or spending quality time with his family.

Q: What’s your favorite part of working with clients?

A:  I enjoy assisting clients in maintaining their accounts and ensuring there is a smooth transition in between changes being made within their accounts.

Jack is not registered with Osaic Wealth.