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Homeowners with Low-Rate Mortgages Increase Payment Speed

2 weeks ago 0

Financial experts typically advise those with low mortgage interest rates to hold onto these loans for as long as possible. Christopher Price, a financial planner, notes that with a 2.5 percent mortgage, gradual and extended payments make more financial sense.

Contrary to this advice, almost 25% of homeowners are opting to pay off their mortgages quicker than required. Surprisingly, those who could benefit most from accelerating payments are not adopting this strategy often.

This insight comes from an analysis by Rocket Mortgage. The company reviewed early payment patterns from almost 3 million loans across the United States over five years.

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