Is it better to pay off your mortgage or to keep it?

  11 answers
  • Sharon Susa Courchesne Sharon Susa Courchesne on Jul 04, 2017
    I would say it is best to pay it off as quickly as possible or which ever debts are most urgent or whichever are charging you the most interest first.

  • Allways better to pay it off! Most of your payment goes toward the interest, and if you sell a home with no mortgage, the proceeds are pure profit.

  • Tanya Williamson Tanya Williamson on Jul 04, 2017
    It is always better to pay debt free ! Then save , save , save !

  • Depends on your situation. Speak with your financial consultant. With no "mortgage" decuction, in some cases, the taxable portion of your income may be higher and more goes to the state and feds.

  • C. D. Scallan C. D. Scallan on Jul 04, 2017
    If you can pay it off without hurting financially , pay it off . It's always better to be debt free.

  • Jewellmartin Jewellmartin on Jul 04, 2017
    If you are getting a tax deduction for your mortgage, and you don't have twice as much money as the payoff on your house would be, continue making payments, but add all you can to the principle. If you can trust yourself to put money aside each month to pay the house insurance and all the local and state taxes on your house, your mortgage interest is so low you no longer benefit from the tax deduction, if you want to have more cash on hand each month, and if you will still have lots of money when you pay it off, go ahead! There's still another hand. Some people borrow against the equity in their home, or refinance, if they want or need a large amount of money for something like a vacation home or nursing home care, but that means you have to pay it back. If one of you is old enough, you can check out a reverse mortgage which pays itself back out of your equity. It's die debt free, or die in debt--which one would give you the most peace of mind?
    How is that for a Masters in Economics? I seldom need to think about such weighty things now. Bless you 😇

  • Linda Blakely Linda Blakely on Dec 06, 2020

    If you pay it off get a line of credit through your bank on your house. You will take this proof of loan to Mortgage Exemption and file and also your homestead. This keeps your taxes from going up. You do not have to use this LOC except every six months. Borrow Money then pay it right back or you can use to repair your home. Just always pay back!!!!

  • Redcatcec Redcatcec on Dec 06, 2020

    We paid on principal and this resulted in our mortgage being paid off quicker, with this you are reducing the base amount of your mortgage, therefore the amortization table is blasted out of the water., the money is on your side with less interest and finance charges.

    Make sure you do not have a pre-payment penalty on your mortgage before you do this, if you choose to. We turned a 30 mortgage into a 12 year paid in full one. To do this, make sure you make your routine payments.

    Oh, and another thing, make sure when you visit the mortgage company and get a receipt for payments on principal, make sure it says "paid on principal", if not, have them re-do the transaction. They have no problem hitting you up for interest and finance charges.

    I am not sure if you can do this on-line banking, we had to either mail in or go to the bank and make a transaction happen. Make sure it says on your check "Payment on Principal" only, we even attached post it notes to pay on principal only on the check. Some tellers that process your payments are not as knowledgeable as others. Best to you!

  • Depends on how your states handles their income tax. In my case it was better to keep a mortgage and get write offs on my yearly federal and state income tax returns than pay the house off as my income would be taxed at a higher rate. This applies in California. When I went into semi retirement, I paid the house off to be debt free (and still am today), as my income is so negligible there isn't much to tax income wise. My largest bill is my property tax paid in two installments each year. That is never the same depending what voters do at the polls to to affect property tax. Jewell has excellent information for you. Here in CA it wrecks my credit report as I finance nothing, never use a debit or credit card except for travel which is at a halt due to covid. So be careful when making a decision and think long term especially if you have children, grandchildren, heal concerns, etc. Many other scenarios can come into play before making this decision. A good financial advisor or CPA can help you as they know the tax laws / consequences for your state, county, city. In my case, I have no living relatives, nor any children and have a fund separate and apart to take care of my pets should I pass unexpectedly before them. So any decision I make does not affect anyone but myself. So in my situation having a mortgage was better tax wise until I retired and paid off the mortgage.

  • Ken Erickson Ken Erickson on Dec 07, 2020

    Pay it off. Especially since the standard deduction is often bigger than itemized deductions. I figured that if I were in a 25% tax bracket, I could pay $1000 in interest to save $250 in taxes. Why give the bank the money. Life is much better without a mortgage. Use that extra $750 to pay off your other debts or save it for retirement.

  • Bogdanit Bogdanit on Sep 20, 2021

    Well, I would prefer to pay off all the debts, especially the mortgage.