What are the pros and cons of paying off a mortgage?

Answer by  Lisa66 (188)

If you have all other higher rate debt paid off, paying off your mortgage is a great idea. The pro is eliminating that high monthly payment and interest. The con is that you will need other credit to keep your credit score high.

Answer by  sarapears (6)

The biggest advantage is that you will be able to have greater financial freedom, if you pay off your mortgage early. However, it also have a disadvantage that you are not going to get the same tax break that you once did.

Answer by  cammieo (169)

The pros of paying of your mortgage are that your house belongs to you and not to the bank. You would no longer have a monthly payment to deal with. The cons are you no longer receive a tax break and you now have to pay your own taxes/insurance.

Answer by  12yrmtgpro (21)

Paying off a mortgage results in more monthly cash flow, a reduction in overall debt, and higher peace of mind knowing that your shelter is owned free and clear. On the other hand, the money used to pay off the loan can no longer be invested in other types of investments.

Answer by  mitchelld (122)

With no further mortgage you can divert the money you would have dedicated to your mortgage to savings or for products or services. The con is that mortgage rates are lower than virtually all other secured and unsecured loans so you are no longer levering your money.

Answer by  CarolynOsborne (2804)

The only possible con would be if there is a fee for paying it off early. Otherwise, it's all pros. You save thousands in interest payments and you own the house outright, which cuts your expenses.

Answer by  koda (40)

The pros of paying off your mortgage is no more interest on your loan and your house is yours. The cons are no tax deduct on interest.

Answer by  xjenbkx (6)

Pros are that you don't worry about payments to bank anymore & the house is yours free & clear. Cons are no more mortgage interest deductions, although you can still deduct for real estate taxes, which due no matter what. I myself would use the $ buy investment properties.