According to financial planner Christopher Price, it makes financial sense to pay a 2.5 percent mortgage slowly. He advises stretching out payments over a longer period. Yet, many homeowners are choosing to do the opposite.
New data shows that around one in four homeowners pay off their mortgages faster than required. Surprisingly, those who would greatly benefit from this approach are not the ones doing it.
Rocket Mortgage provided insights into this trend by reviewing early payments on nearly 3 million of its loans across all 50 states over the last five years. This extensive analysis highlighted the unexpected behavior among homeowners preferring prepayment.