Many Homeowners Accelerate Mortgage Payments Despite Low Rates

Homeowners with low interest mortgage rates are choosing to accelerate their payments. Surprisingly, almost one in four homeowners pays off their mortgage faster than required. Yet, the ones who might gain the most from this strategy are not among those accelerating payments.

This insight comes from major lender Rocket Mortgage. The company conducted an analysis of early payments on nearly 3 million loans across all 50 states over a five-year period.

“Financially speaking, if I have a 2.5 percent mortgage, I would rather pay them as slowly and as long as I can,” says financial planner Christopher Price. (Michelle Gustafson/For The Washington Post)

Price suggests that keeping a low-interest mortgage could be financially advantageous. The current trend, however, shows that many homeowners prefer reducing their mortgage debt faster, even when the interest rate is favorable.