Why you shouldn’t pay down your mortgage faster
The impulse to pay off your mortgage more quickly than you need to is understandable, especially these days. Interest rates are near historic lows, so it’s possible to replace a 30-year mortgage with a 15-year loan and still afford the monthly payments. Or, if you’ve already refinanced at a dirt cheap rate, you can take those savings and pay down your principal faster. But the allure is more emotional than financial. Mortgage debt provides great financial flexibility, and paying it down fast probably isn’t the best way to grow your nest egg. ‘‘Generally speaking, there’s no advantage to paying down a mortgage earlier than you need to,’’ says Greg McBride, senior financial analyst at Bankrate.com.