Pay off mortgage?

bclintonk
Sat, 24 Jan 2009 13:11:36 +0000

oregonianmom:

We don’t have a very large balance left on the mortgage at this time, but the interest rate is higher than what we’re currently earning in the market, so I thought paying it off might make sense that way too.



Well, that’s a different issue. Paying off a high-interest mortgage does strike me as a sensible investment right now, if you can swing it. It will free up cash to invest, hopefully at higher rates of return, when market conditions improve, and you’ll have a nice fully paid-off asset in your house which may make it marginally easier to get a nice HELOC when the credit market eases, especially if housing prices firm up. But it probably won’t make any difference in FA at most schools that use PROFILE.