When is the mortgage payable?

 When is the mortgage payable?

At the time of signing a mortgage loan, you usually feel a certain sense of exhaustion when you think about all the time remaining until the full amount is finally repaid. Fortunately, there is the possibility of mortgage repayment in those cases where sufficient funds are provided. This means that the amount borrowed by the bank can be paid in advance, either partially (only some installments) or in full. 


 When is the mortgage payable?

Thus, it can be emphasized that any moment would be ideal for providing financial debt funds and benefiting from interest savings. However, it is recommended to perform a extinguishing, if possible, during the first years of the mortgage, where most of the interest is paid at the beginning. 


In addition, it is also worth paying off the mortgage when the limit that can be deducted in the income statement to acquire a regular home is not reached. Only taxpayers who included this concept in the declaration before January 1, 2013, can enjoy these tax benefits, as the said deduction was eliminated from that date. 


Important points for mortgage repayment 

To pay off the mortgage, it is necessary to save money, which can be used in two ways. On the one hand, it is possible to reduce the monthly fee and on the other hand, shorten the total duration. When choosing between one alternative and another, it is appropriate to keep in mind that you can achieve greater interest savings by reducing the duration of the loan rather than what is paid monthly. Besides, it will also be completed before the debt is repaid, although it is advisable to inquire in advance whether this decision requires any commission to pay off the mortgage early. 


Another point to evaluate is those related to interest rates when you have a mortgage at a variable rate. In general, mortgage money is paid less upfront when these rates are close to zero. Although it is strange that this situation occurs, it has happened in some cases and therefore it is important to be careful because it is better to wait for higher prices to reduce interest. 


On certain occasions, uncertainty also arises as to whether it is better to allocate the funds held for the mortgage or invest it in a financial product. The key to solving this question lies in the profitability that the latter can offer compared to the economic benefits that can be achieved through mortgage repayment.


In any case, this will depend on the risks that everyone is willing to bear. For conservative profiles, the most viable option is to get rid of the mortgage loan as quickly as possible without risking any money in other products. In the opposite case, it is possible to bet on an investment for a higher profitability in the long run, even if that means assuming higher risk.