Buying a home is probably the biggest purchase you will ever make in your entire life. This also requires a lot of time and money, as very few homeowners can afford to pay the full amount in cash and would therefore resort in mortgage applications. If you have finally paid off your 15- or 30-year loan, what should you do next?
Buying a house in today's market is never a joke. It entails a lot of commitment, time and effort, as majority of homeowners avail of the 30-year term in mortgage applications. Paying off your loans after the said duration of time, however, can often be seen as an end goal for most, which definitely calls for a celebration.
While a party is definitely called for in this situation, there are still some productive ways in which you can celebrate the end of your monthly mortgage payments. According to Realtor.com, you can continue saving the same amount of money for mortgage payments for yourself.
This would be a perfect way to save up for your retirement and even build up your emergency fund. While paying off your mortgage would mean lesser financial burden for you, it may be wiser to continue setting aside a portion of your income for other purposes.
You may also help your children pay their own loans now that you are done paying for your own. Aside from this, it may also be a great time to start investing in the real estate market.
"The most common way I have heard homeowners celebrate paying off the loan is with the purchase of an investment property," said Realtor Melanie McShane.
As previously reported here on Realty Today, investing in the real estate market is one of the best ways of diversifying your portfolio and even earn some extra income on the side.
Purchasing a vacation home will also be a good option for those who are looking to rent the property when they are not using the house through online rental services such as Airbnb.
