I have about 20k left to pay on my mortgage. Shld I just pay it off - or wld that be bad, for tax purposes??

Question

I have about 20k left to pay on my mortgage. Shld I just pay it off - or wld that be bad, for tax purposes??

Answer 1

If you have the means to pay off your mortgage, do so.  The tax benefits are minimal.

Answer 2

I would just pay it off in most cases.  You probably are not getting much of a tax break on the last 20k anyway.

Answer 3

for tax purposes its bad because you wont be able to write off the interest, (but at that low of an amount you may not even be reaching the threshold for it to have any effect anyway).

but at a strictly financial point of view...PAY IT OFF!

the interest you pay is way more than the peanuts you get in tax benefit.

even if you are in the 10% tax bracket, if you pay $10000 in interest to the bank you will only get $1000 of  less tax paid. So you paid $9000 to save $1000. this does not make sense.

but here is the kicker, if you have a business oppertunity and you need capital, then dont pay it off. use that money to make way way more than what the interest on it is....but this is only if you know how to make money (real money) off of your capital.

if not....pay it offf....you save way more.