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[quote=Anonymous][quote=Anonymous]One flaw in the reasoning for not paying it off is that when you invest the money that you would otherwise have used to pay off the mortgage, that that investment will be an excellent one. Anyone who has ever invested knows that a great return is not guaranteed. But, if the mortgage is paid off, that is an expense that you will never have again, and you can live there while looking for other investments.[/quote]

The inverse is however also true, if you have paid off the mortgage then you don't have as much to invest, and if you need cash you are reliant on the appreciation of your home, which is no less risky than markets, although considerably more illiquid. The right answer simply one that compares the expected anticipated returns against the interest rate of your loan.

I also add that given current rates that investment need not even by "excellent". Assuming you have a 2.5% 15 year, and you can average a paltry 4% you'll enjoy a 1.5% spread right out of the gate. [/quote]

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