Did anyone see the article in the WSJ about mortgage interest and taxes? I wont link to it because I think it is behind a paywall. Forgive me if I sound stupid -I am trying to figure out if we are still going to be able to deduct our mortgage interest.
Being able deduct and a really low rate has made me feel we wouldn’t benefit that much from paying it off early.
So am I reading this right? We need more than 24K in deductions to itemize? Is that correct?
Thanks
Saw that article. Yes, the standard deduction for married filing jointly is $24,000 so your itemized deductions would have to exceed that . With that $10,000 total SALT per return, we’re going to be close. It all depends on how much unexpected dental work comes up LOL. At least we can still itemize medical/dental for 2018. So we’ll wait another year before deciding on the mortgage.
Yes, you are reading that correctly. But, if you do have a “really low” rate, you might consider keeping it even without the tax deduction. Instead, it maybe better long term to max your 401k, your HSA and any other retirement options.
Plus, with interest rates increasing, the question is can your investments beat your say, 3% mortgage, over time. (assumes that your low mortgage is 3%.) Almost always better to spend other people’s money. hahahaha
Mortgage is 2.9%. 401 K is maxed out, I think the HSA is as well -but I will check. Thanks
I have a 3.1% mortgage and have decided Not to pay it off (even tho I’d love to have a zero payment in soon-to-be retirement). However, I believe that I can beat that ‘investment’ return over the 10 years remaining on the mortgage. But if not, I still have the cash available.
We’ve kept our sub 3% mortgage rather than paying it off simply because I feel I can invest my $$ and do better than that most years. The balance is small these days and I consider it my arbitrage. 
Don’t pay off a 3% mtg. Go on vacation and enjoy yourself.
Our mortgage is at 3.25%, 14 years left. Able to deduct much of it, so I figure it works out to be about a 2% loan. However, it would be nice to go into retirement without it!
Our mortgage rate was 5%. It felt great to pay it off and not have it when H retired. Intangibles matter too!
I don’t think we will be able to deduct it now -but I know it is a low rate. I think I have a mental thing about paying it off .
Thanks all
Indeed. I was a finance major and know (intelllectually) that paying off is not a good deal. But the emotional aspect still weighs heavy.
Just remind yourself that you have the assets there to do so - if it was the financially prudent thing to do. But, it’s not. You’re in the driver’s seat. Use your money towards its highest, most efficient use which isn’t paying off your low rate mortgage. Then pat yourself on the back for sound and sensible financial acumen. 
We paid off our mortgage on our new house 4 years after buying it. Doesn’t feel like a mistake.
I bet it feels great
Not a mistake per se (assuming low interest rate). But just a sub-optimal investment strategy.
One also must factor in one’s risk tolerance and personality. If you feel better sleeping at night knowing that your mortgage is paid off, there is definitely value to that for some people. For me, personally, I derive the same feeling of satisfaction and comfort from knowing that I have that savings invested as I would having my mortgage paid off. Both are great places to be in vs neither.
^^Bingo. Investment strategy all comes down to what helps you sleep better at night. For some, that is 100% equities, for others its 100% savings bonds. Most are somewhere in between.
Ha - my advertisement for this thread is tax forms !
I too made a “sub optimal” investment strategy…3% 5 year old house has 9 months till it is paid for. I now regret paying extra to hurry and get it paid for.
“Investment strategy all comes down to what helps you sleep better at night. For some, that is 100% equities, for others its 100% savings bonds.”
True to an extent. I’d argue 100% savings bonds isn’t very prudent and won’t cover inflation risk. So, yes, take your personal style into account but one must also be financially educated and prudent as well. There is a balance.
Here’s a graph of 30 year mortgage rates since the 70s so if you are sitting on sub 3% or anywhere close it, that’s “cheap money”.
https://www.valuepenguin.com/mortgages/historical-mortgage-rates