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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Pay off mortgage.  No question.  You want a remodel, you don't need it.[/quote]

Are you crazy? Or financially illiterate? OP has a less than 2.8% mortgage. She can get a 5% risk free return right now through HYSA, Treasuries, or money market funds. Why in the world would she choose the lower return from paying off the mortgage? [/quote]

You have to pay taxes on that 5%, so it’s like 3.5% after taxes. Unless she itemizes her deductions, she’s really only earning 0.7% above the rate of her mortgage.

Not everyone feels the need to squeeze out every last 1/10th of a percent in return, especially when there are other benefits to paying off your mortgage (such as dramatically reducing your monthly fixed obligations).

Glad I could help you understand this.[/quote]

Go back and read the original PP. She said "Pay off the mortgage. No question." Your analysis doesn't change the conclusion that her advice was wrong. At best, you've made the argument that there are intangible benefits to paying off a mortgage, but those will come at an actual financial cost. Also, you sound like a snide middle aged know it all. Glad I could help you understand this. [/quote]

[b]Toward the end of our mortgage [/b]we got very little back with taxes and with the new changes of the preset $25k deduction we got nothing back.  It was freeing.  Now if we want to renovate we will pay all or at least half in cash and pay that off quickly.  We are closer to retirement and kid is still in hs so not going heavily into debt is important to us.  [/quote]

NP but OP has [u]20 years[/u] left on their mortgage.  "Pay off the mortgage, no question [and then take out a HELOC for a renovation]" is unequivocally bad advice.  Even people who tout the mental freedom of no mortgage and a lower monthly obligation should realize this is terrible advice, because OP will still end up with a monthly payment at a higher rate![/quote]

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