If you’ve hung around the personal finance communities long enough you’ve probably come across articles that vie back and forth about the rational direction that new money should flow when a mortgage is involved.
Pay down the mortgage or invest new money? Hmmmm.
This blurb isn’t about that discussion. This is about a rather coveted moment when after years or perhaps decades of penny pinching and faithful mortgage payments or overpayments, you’re at a point where the loan balance is now diminished enough to be crushed into oblivion.
Now this thinking is more specific to an adjustable rate mortgage that adjusts the payment every year to make sure the loan stretches out to the original term, but my thinking is that if you’ve got the loan balance to under a certain amount let’s say $1,000 and you have a competitive rate, you might want to consider simply paying down the balance to a negligible amount and keep the mortgage going if your monthly interest is a small amount? Why?
Simply to have the mortgage escrow service act on your behalf to take on responsibility of making sure property taxes are paid on time.
If you’ve got a few investment properties, this will save you the trouble of having to remember the two times of the year that property taxes are due and then check with your county online or through a paper bill and then make the payment through the county approved method.
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