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  • FinancialMD

Should I pay off the mortgage?

Updated: May 25, 2020

This blog is meant purely for educational discussion of finance. It contains only general information about financial matters. It is not financial advice, should not be treated as such.


Very controversial topic to say the least, great percentage will say yes.

I say NO.

I will briefly tell you why.

Unless you are extremely wealthy, there are a few things you can deduct from your taxes, interest on the Mortgage is one of the few you CAN, and you should take advantage.

Property value will increase over time, your salary will increase over time, however your mortgage payments will remain the same.

By paying off the mortgage early you will essentially be piling the money in the house, in the future should you need the money the only way to get it is either selling the house or refinancing the property.

Let's say you just sold your property- made 300k on the sale and want to buy a 500k property, should you put 300k down? NO.

Just put 50k down and invest the 250k @ an average 8% Return of investment in VTSAX (FYI- Return was 11% in the last decade )This will yield you $539,731.00 in 10 years at 8% Return of investment without adding any money to it.

By not committing money to paying down the mortgage you also have more liquidity to max out your 401k or IRA/Roth accounts.

These are just brief pointers and suggestions so you do not find yourself low in cash and rich in house forcing you to make a costly decision.

Till next time.


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