QUESTION: Is my mortgage well integrated into my financial plan?
ANSWER: While securing a low rate or owing little on your mortgage are great achievements, neither will make you financially secure if you don’t also have a plan in place for retirement or have liquid cash on hand to cover an emergency. So before you get excited that you have a low mortgage rate or owe very little to the bank on your mortgage, ask yourself the following questions:
· Do I maximize contributions to my retirement plan at work?
· Do I carry balances on high interest non-tax-deductible consumer debt?
· Do I have a sufficient liquid rainy day fund established?
Remember: Your mortgage is just one element of your financial plan. And, if you’re making large credit card payments every month – which means you’re paying more in the long-term in interest on these payments than if you were able to use some of your equity to pay off your debt – than your mortgage is standing on its own, instead of helping you increase your overall worth.
If you’re not sure how your mortgage fits with the rest of your financial plan or budget issues, call or email today. It only takes a few minutes to discuss your unique situation and determine if you have the best overall plan in place for you and your family.