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Why You Might Never Want to Pay Your Mortgage Off
A couple of weeks ago, I responded to a couple of questions about paying off your mortgage early. This week, I got the opposite question. Given record low mortgage rates, does it even make sense to ever pay off your mortgage at all?
No, I don’t mean not making your mortgage payments, although even that can make sense under some limited circumstances . I’m referring to a strategy of refinancing your mortgage to a new 30-yr loan every 10 years or so. You would then use the cash savings to pay down higher interest debt or invest for higher returns. This approach has been advocated by financial guru Ric Edelman, but other financial gurus like Suze Orman and Dave Ramsey recommend the opposite: paying your mortgage off as soon as possible.
Source: Forbes