Aug 82 min read

Should You Pay Off Your Mortgage?

I get this question all the time: from those who just purchased their home to those deep into retirement. The answer is complicated and specific to the individual's situation.

Some important things to consider:

Do you have an adequate emergency fund?
Can you hit your short-term goals?
Do you feel stressed month-to-month with cash flow? I.e., do you have any left over each month after paying bills?
Are you saving for retirement?
What's your interest rate? Is it much lower than the market's long-term average of around 10%? Could investing be more beneficial in the long run?
Does paying off your mortgage provide peace of mind? Can you take more risk with your investments if you know your house is paid off?

Every client and situation is different.

The following flowchart could be helpful if you are considering paying off your mortgage.

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