Pay off Mortgage?
Is paying off your mortgage a good idea? I have often wondered that because it would be nice to not have a mortgage payment each month. The problem is that ‘everyone’ says it is best to have a mortgage due to the tax breaks that you receive. I came across a Suzi Orman article in a magazine the other day and she was talking about this very mortgage subject. In the early years of a mortgage (which is where we are) the tax advantages are great due to the high percentage of your mortgage payment going to interest charges but once you have 20 years paid of a 30 year mortgage the interest payments are much smaller thus your tax advantages are smaller too. Her point was by this point it probably is a good idea to pay off your mortgage early but not at the cost of sacrificing your 401K or retirement savings. Food for thought …
