The Pros and Cons of Paying Off Your West Chester or Liberty Township Home Early

If you’ve purchased a West Chester or Liberty Township home for sale, there’s a good chance you have a mortgage on the property. Mortgages can vary, but most are for a 15- or 30-year term. That doesn’t mean you need to WAIT that long to pay it off, though.

Say you fell into a little bit of dough. Maybe it was an inheritance or a large bonus at work. You might consider putting some of that money toward the mortgage on you West Chester or Liberty Township home. This would help you pay off the mortgage faster, thereby paying less interest along the way.

But is prepaying on your loan a good move? Any benefits depend on several factors, including the loan's interest rate, your financial situation and more. Let's look at the pros and cons of paying off your mortgage early:


  • More cash flow: Once your mortgage is paid in full, you'll have fewer overhead costs on your West Chester or Liberty Township home and lower monthly living expenses.

  • Reduced financial stress: By eliminating your mortgage bill, you'll have more disposable income available.

  • Increased equity in the home: A paid-in-full mortgage means you own your West Chester or Liberty Township home outright and can sell it or turn it into a rental property at any time. It also means you have equity that you can tap if you need funds for other large expenses, such as paying off student loans or if you want to buy a vacation home.


  • Loss of tax benefits: One of the biggest benefits to owning a home is the tax benefits. Each year, you’re able to write off the interest you pay on your loan – it’s known as the mortgage interest deduction. When you pay off the loan, you lose this benefit. That’s why some suggest that you may be better off investing surplus cash into a retirement account or other form of investment.

  • Reduced liquidity: Cashing in on your home equity is more difficult than accessing a savings account or rainy day fund. (That said, if you take out a home equity line of credit, you can use this HELOC like a credit card….)

  • Savings starvation: By pouring all your money into your mortgage, you could be starving other savings and investment accounts in the process.

OK – so now what? If you’ve decided that you want to pay off the mortgage on your West Chester or Liberty Township home early, there are a few routes you can take.

Refinancing is one great way to shrink your loan term and pay off that balance in less time, though it may still take a few years. You can also ask your lender about an accelerated payment plan, or consider using savings or investment funds to pay off your balance in full.

Interested in learning more about the West Chester and Liberty Township real estate market? Give us a call today! One of our team members would be happy to discuss in more detail, and if need be, connect you with some of the lender who we’ve worked with here locally.