Is paying off your home mortgage a good idea?

Answer 1

I paid mine off. I'm in a pretty low tax bracket now so I didn't really need the interest deduction as it didn't help me that much any more.

The interest I saved paying it off early was in the thousands of dollars.

Since most of your payment on a 30 year loan goes to interest in the first 20 years of the loan, anything you can add to the principal during those first years is going to help a lot in saving tons of money over the long haul.

Answer 2

It depends on your situation. It is a good tax deduction (interest on the mortgage) if your itemized deductions are more than the standard deduction. If you either do not have more itemized deductions than the standard deduction, or, make more than a certain amount of money in a year (I don't know what that is since I don't make that much), you won't be able to deduct the mortgage interest and if you can afford to pay it off, I would. I have a friend whose husband makes a really good salary & they paid off their house (in about 5 yrs) because they couldn't deduct the mortgage anymore.

Answer 3

Depends on your interest rate, but there's a number of ways you can look at it.

Let's say someone loaned you 10 dollars and you were paying them back a penny a month. But you could take 10 bucks out of other monies you have and pay it off. Would you rather pay back at a penny a month, or take 10 bucks out of a vehicle earning you 10-15% interest? Looking at it on smaller scale I think shows you better the issue involved. If someone is willing to loan you money at a low interest rate, you should take it and pay it under the conditions allowed, using other money to invest and grow.

Answer 4

If you have the money to do so, of course. I would definitely pay off the mortgage in full if possible. Why let is sit there and have interest keep on piling up? The sooner you pay it, the more money you save.

Answer 5

A very broad question with endless possible answers. It depends on your personal situation. If you have enough liquid cash available to pay it off, and that liquid cash is earning only savings account interest, then it makes sense to pay off the mortgage, which is probably at a much higher rate of interest. On the other hand, you could be using your available liquid cash in investments which are earning MORE per annum than the rate of interest your mortgage carries. You need to analyze in financial terms which type of situation you are in.

Answer 6

Depends on your other debts. If you are at the beginning of a mortgage, I would make accelerated payments toward principal if you can. It will save you thousands of dollars in interest over the life of the loan.

Answer 7

Of course. But if you are close to getting it payed off in the near future, you may consider not to. when you first making payments, most all of it went to interest. Now almost all goes to principle You might not save much in interest. And you may be taking it off you're taxes at the end of the year. Pay it off or wait. Win, win either way.

Answer 8

It depends on the interest rate of your mortgage (current and future.)

I have a mortgage at 4.25%, so it is unwise to pay it off aggressively. I'm better off putting the extra money in a savings account at the same bank that pays me 4.5%.

Answer 9

YES, If at all possible pay it off. If you still want a tax deduction, give to a charity where that money will actually do some good besides making the bankers richer.

Answer 10

Yes.