12 Reasons Why Paying Off A Mortgage Early Isn’t Always The Right Move

house-backyard-1Do I think it’s wise for you to pay off your mortgage early?

You may as well ask me if I think it is a good idea if you paint your living room sage green.

I used to think paying off your mortgage was an absolute no-brainer.

Then I did a complete 180, changing direction like one of those day-glo orange heliport windsocks. Oh yes, I did.

After re-surveying the macroeconomic condition of the United States and trying to interpret the future direction of its fiscal policy, I was ready to declare that maybe, just maybe, pre-paying the mortgage isn’t a good idea after all.

Suddenly it just didn’t seem like it made much sense to pay down a 30-year, $120,000 mortgage at 4.5% interest if I truly believed that high inflation was inevitable down the road as a result of Fed’s relentlessly lax monetary policy and the current administration’s plans to greatly expand the size of the Federal government and its entitlement programs.

The question of whether or not I think you should pay off your mortgage is not as cut-and-dried as, say, whether or not I think you should pay off your credit card balances in full each month. Of course you should pay off your credit cards in full each month; but when it comes to paying off the mortgage early, there are solid arguments that can be made either way.

Here are 12 good reasons why you should — and should not — pay off your mortgage early. Which ones resonate most with you?

  1. August 6, 2014
  2. July 1, 2015

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