With the Standard Deduction increasing for 2018-2025 many taxpayers are contemplating paying extra toward their principal on their mortgage or completing paying off their mortgage.
Pros to keep your mortgage:
- 3.75%-4.25% is a reasonable rate
- Mortgage debt is “good debt”
- Money not put towards mortgage debt can be put towards additional 401k funding or other investments
- Other needs such as student tuition, emergency reserves
- Liquidity-additional payments to principal reduces your cash flow
- If your rate is not fixed interest rates are rising
There is no right or wrong answer; it is a decision to be made by each individual with the assistance of their tax professional and financial advisor.