(Source: New York Times) – JUST because you own a home doesn’t mean you have to keep carrying a mortgage — about a third of American homeowners don’t, according to the Federal Reserve. Assuming you have the cash — perhaps in a savings account or certificate of deposit earning less than 1 percent interest — should you pay off your mortgage early? It’s a question that has both financial and psychological components.

“It’s a slam-dunk to tell someone to pay off a credit card or pay off a car loan or pay off a line of credit,” said Gary Schatsky, the president of New York financial planning firm ObjectiveAdvice.com, but paying off long-term debt like a mortgage is more complex.

Source: New York Times

Published: June 16, 2011

To read more, click on this link