Many people believe that it is worth it to not pay off your mortgage because of the tax break that you receive for the interest you pay on your mortgage. So, is it wise to pay off a mortgage and not receive the tax break?
I'd say pay off the mortgage if you currently have enough money to do so and retain a solid emergency fund. The tax break is only a mortgage-interest deduction which means you can't write off the entire amount spent on interest each year. However, if you pay off your mortgage, you will not have to pay any interest!
My only warning would be to not empty out all of your life savings in order to pay off the mortgage. One of the hardest things I have seen is people who are house rich but cash poor. Meaning you have a $200,000 house that's paid for, but you can't fix the A/C unit if it goes out.
What is this page about?
This page is dedicated to answering some of the most common questions that we have heard from our class members.
If you can't find the answer to your question below, please feel free to fill out the form below and we can answer it!
This page is designed to provide accurate and authoritative information with regard to the subject matter covered; however, it is offered with the understanding that the author is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.
Disclosure of Material Connection
If you purchase a product or service I reference next to a link you click, I will receive an “affiliate commission.” I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
But Remember: Regardless of whether I receive a commission, I ONLY recommend products or services I use personally and believe will be good for you.