I’m wondering if I should rush to pay off my mortgage?
March 26, 2014
Paying off a mortgage is obviously a great way to eliminate debt, but you need to tak a hard look at the numbers. If you have a great interest rate you generally don't need to. A low rate is a great thing as well as al the interest you pay on your mortgage could be deductible. And if you have a low-interest mortgage, you should usually first focus on maxing out retirement plans before paying extra on your mortgage; it's better to get rid of any high-interest debt first. If your mortgage interest rate is much higher than what you could make by investing the money within the same time period, then it's a good idea to pay if off. Also, having equity in your home allows you to set up a home equity line of credit, which is a way to access cash in case of an emergency.