Should I consider paying off the mortgage?

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.