Should I pay off my loan early?

Pay it off. There are some people that will tell you that when you pay off your mortgage, you're losing the tax benefit of paying interest. That is true, but if you're in a 25% tax bracket then you only save 25 cents in taxes for every dollar you pay the bank in interest. Others say that at today's low interest rates, you should invest the money instead. Well, even if your loan has an interest rate only of 4%, then by not paying any interest on the loan, you are effectively earning 4%. The most important thing here is that there is no wrong answer. If you still have a nest egg to fall back on in case of an emergency, and having no mortgage makes you feel worry free (or less worried), then I would pay it off. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Certified by the National Association of Mortgage Professionals and Licensed in California and Arizona ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Paying off your mortgage is the ultimate goal for most, however a mortgage or any loan is leverage and can be very important depending on your situation. If you're not already itemizing your tax deductions it will not likely have any effect by paying it off though. However, if you can invest that money & make more than what you would be saving by getting rid of your mortgage then you may want to explore that option as well. All depends on your needs.

Michael,You should talk to either a tax advisor, investment advisor, or both. If you interest rate is really good, i.e. 4%, when you factor in the fact that you can deduct the interest you are paying, the effective rate you are borrowing at is probably closer to 2.75%. The argument for not paying off your loan is that if you are able to invest the money you would otherwise put into the house and can earn more than that, you are ahead of the game. The "investment" in your home doesn't change depending on how much you put into it. In other words, your home is going to appreciate or depreciate based solely on the housing market, not on how much you owe. I hope this makes sense, but feel free to ask me for clarification!Scott

Hi Michael: I would suggest that you speak to both your accountant/tax professional & with your financial planner on what is best for your whole situation. It would be hard for an outside person to answer this as we are not aware of your whole financial picture and what plans you have for the future, do you have kids/grandkids, when do you want to retire, what other debt do you have, what are your goals, dreams and aspirations etc... If you need a referral to either profession listed above just let me know. Good Luck and Take Care:) Sincerely, Mandy Fritsche, Prospect Mortgage, Mortgage Loan Officer, NMLS# 557211262-327-5700 Cell, 877-868-9198 Fax, mandy.fritsche@prospectmtg.comwww.MyProspectMortgage.com/mfritsche

Michael -- Mandy pointed out many of the items that make this hard to answer. You should meet with your tax accountant, and get information from him to better determine your particular answer to this question.

You should check with your accountant to see what the tax ramifcaitions of such action may be.

Paying off your mortgage is the ultimate goal

Defiantly consult qualified tax advisor or investment advisor to see what is best for your specific situation. There are many directions you could go. It would be difficult you us to advise you on that direction without know more about your situation.

Absolutely Mike! I agree with your thinking. Why worry about it, just pay it off and be done making that payment. Start saving once you paid the property off as if you still had that payment. At this point your options are wide open and you now have some leverage. This is why the rich get richer and you know. Be blessed in Wisconsin!

You should do what the rest of us would like to do - pay it off.