A mortgage
is one of the biggest financial transactions you will ever make. For
that reason, it’s important to find an Arizona mortgage program
that meets all of your needs. This includes your financial planning
needs as well as your home financing needs. Many people don’t
know that there are other options other that traditional 15 year and
30 year fixed rate mortgages.
Finding the right Arizona mortgage for your financial
strategy can work in your favor by reducing interest expenses and
maximizing tax deductions. You could turn your mortgage into an asset.
A big part of benefiting from your Arizona
mortgage is paying it off early.
Paying off a mortgage early is more financially beneficial for people
who are heavily invested in short-term investments, such as certificates
of deposit and money-market funds, if the mortgage interest rate is
greater than the return on such investments. Compare your Arizona mortgage
interest rate with the rate of return of an investment portfolio. If
your investment return rate is higher than your mortgage interest rate
continue making standard monthly mortgage payments. If your investment
return rate is lower than your mortgage interest rate pay off your Arizona
mortgage early.
Since Arizona mortgage
financing is generally one of the least costly sources of funds
available, Arizona mortgage prepayment may not be financially correct
for long-term, active investors. Always compare investment earnings
with the interest paid on borrowed funds, and keep in mind that earnings
on most investments are taxable, while Arizona mortgage interest is
generally tax-deductible.