2007-09-09 04:54:55 · 5 answers · asked by muffinmonkey 1 in Business & Finance ➔ Personal Finance
As others have said, pay off non-mortgage debt first. When you sell the house, you will recover whatever you paid on the mortgage. As for the tax deduction, FORGET IT. IF you pay $10,000 in interest, you save $2,500 in taxes. In other words, you give the mortgage company 4 times what you save in taxes. This is NOT a good deal. Property taxes can still be deducted without a mortgage.
2007-09-09 08:12:40 · answer #1 · answered by STEVEN F 7 · 1⤊ 0⤋
Pay outstanding bills first - like loans from other sources with higher interest rate. Then, if you clear the mortgage (good for credit rating) hang on tight to any funds left over and continue to save the repayment amount. You will be living worry-free and also saving towards the down payment on your next home. Keep in mind that there may be months between agreement on the house sale and getting the money into your hand. You don't want to find your nest egg has slipped through your fingers.
Good luck !!
2007-09-09 12:44:18 · answer #2 · answered by bluebell 7 · 0⤊ 0⤋
I would suggest you pay it off. Any money you get from selling your house will be put towards your next house.
Even if you do get a tax deduction, the difference will probably be very minimal compared to what you'll pay in interest on the mortgage loan in time.
It will also give you piece of mind, one less thing to pay for every month.
2007-09-09 12:24:13 · answer #3 · answered by Sammy330 3 · 0⤊ 0⤋
Just my personal opinion....I would pay off any credit card baances you have that might have high interest first. But after that, sure, pay it off and save the money you aren't using for your mortgage for a down payment.
2007-09-09 12:04:53 · answer #4 · answered by Andrea C 3 · 1⤊ 0⤋
I wouldn't pay off the mortgage. Mortgage payments get you a tax deduction. Keep the tax deduction!!!
2007-09-09 12:13:55 · answer #5 · answered by dcgirl 7 · 0⤊ 1⤋