2007-12-26 11:35:08 · 7 answers · asked by Plan2retire 1 in Business & Finance ➔ Personal Finance
Not unless you are neglecting other things like credit cards in doing so.
It can be less efficient, but almost never a mistake.
The only other time I can think of is if you spend all of your money paying it off but don't save for retirement. In this case, you will still be able to take out a reverse mortgage, but it will reduce the amount you get per month against what you saved.
2007-12-26 13:38:34 · answer #1 · answered by moonman 6 · 0⤊ 0⤋
Assuming that you have an emergency fund available to cover 3-6 months of expenses .....
It is NEVER a mistake to pay off debt.
Anyone who tells you otherwise is a financial fool. And don't ever fall for the "but you'll get a tax break" line.
(If you are in a 25% tax bracket - and you pay $2000 in interest - you'll get a $500 tax break. So you'll pay $2000 to save $500. That's nuts!)
2007-12-26 19:47:31 · answer #2 · answered by Joe 3 · 0⤊ 0⤋
It depends on: (1.) Your age (2.) Your interest rate (3.) Whether you expect your income to go up or down in the future. If you will re-ask the question with answers to these three questions, I think you will get some correct answers. Right now, anything that anyone tells you is just a shot in the dark.
2007-12-26 19:48:52 · answer #3 · answered by Glenn S 3 · 0⤊ 0⤋
As long as you aren't sacrificing money you'd be putting towards retirement it's typically a good idea to pay off your mortgage ahead of time. The sooner you pay it off, the less you pay them in the long run.
2007-12-26 19:45:43 · answer #4 · answered by Dave T 4 · 0⤊ 0⤋
No, it mostly depends on the interest rate. If the interest rate is high and you can pay it off, might be a good idea. If you can make more from the money by investing it somewhere else, it probably doesn't make sense to pay it off.
2007-12-26 19:48:10 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
There are a few ways of looking at it.
First, you won't have a tax deduction, but then you won't be paying any interest.
Secondly, you won't have any leverage regarding the value of your property.
Let me explain... You have a house worth $100k and you owe $80k. The house appreciates 10% or $10k.
Your appreciation is 50%. If you owned the house outright your appreciation is 10%.
If it were me... pay it off!!!
2007-12-26 19:44:52 · answer #6 · answered by beckoningsubstitutes 5 · 0⤊ 0⤋
I'm no expert but I'm glad we paid off the mortgage on our home. Our income has decreased and we wouldn't be able to continue living in our home if it wasn't paid for now.
2007-12-26 19:39:15 · answer #7 · answered by Miz D 6 · 0⤊ 0⤋