My husband and I are 42 and 44 respectively. My husband wants to pay off our morgage early. We'll probably be paid off in about 6 years at the rate we're going. However, my dad says this is a bad thing because it will hurt us tax-wise. Who is right?
Barbara
Never part with money just to get a tax break. As long as your tax rate is less than 100%, you're better off keeping the cash.
This is especially true if you're paying 6% or so on your mortgage and getting 1% or less on a savings account. Paying off debt can be a good investment!
Remember to keep an eye on your total financial picture, however. Always keep at least six months' living expenses someplace where you can get to it. Balance your investments. Review your insurance once a year. After that, if you can pay off your mortgage, go for it!