This is a big decision. Help me make the right one!

[samcat]

We paid off our mortgage in 2011 and never looked back. As long as we pay our property taxes, no one can take our house. We are debt free and love it!

As long as you have an emergency fund and would feel better being debt free, I say go for it.

 

[Time2]

While there are no guarantees, it is more likely that not that the portfolio that you describe above will exceed 4.5% over the next 6-7 years.... so I would vote to invest.

An investment portfolio gives you more flexibility if you lose your job or have a medical emergency in that you can tap into it for expenses or mortgage payments.. you can't tap into your home equity as easily to pay expenses.

The flexibility of having the money available for any emergencies and the
good possibility of growth over 4.25% leads me to invest the money. If the mortgage rate was a bit higher, the decision would be harder, but having the money available is still a big comfort for tough times.

 

[RISP]

1. My rate is 4.25%.
2. I am not able to take the mortgage deduction on my taxes.

That's really all I would need to know. 4.25% guaranteed, after taxes? I'd be all over that. Of course you need an adequate emergency fund, but that should go without saying.

(Disclaimer: Personally, we no longer make extra payments towards our mortgage, but then, the rate is 1.41% fixed.)

 

[ncbill]

From what I've seen it matters most for those who face leaner retirements.

The relative I just buried (early 70s) would have had far more flexibility in their forced retirement (booted out around age 60) had their mortgage been paid off by then.