60 Second Tips: Baby Boomers, Should You Pay Off Your Mortgage?

Is paying off your mortgage a good idea for Americans in late middle-age? Well — like all financial decisions – it depends.
So Give me 60 seconds and I’ll help you decide.
It really depends on a bunch of things: Think about the length of time left to pay the loan, the interest rate …your retirement savings, other debt, and of course your current employment status. That said, Baby Boomers, or people ages 51-to-69, have watched their median outstanding mortgage balance rocket 142% since 1992!
So while your gut probably is screaming – just pay it off already!!!
Hold on a second…
Granted — If you have enough money to retire and no other debt,then sure, go for it. But if not – it probably makes more sense to max out your retirement savings first…
Most financial planners would rather see you invest that money in a tax-favored account like IRAs and Roth IRAs. –rather than wipe out your savings just to pay off your mortgage.
Especially if you don’t plan on dying in the house. And if you have a low fixed interest rate on your loan -and you’re getting a mortgage interest deduction, it almost becomes “good debt” and makes sense to keep it. Bottom line it depends on a bunch of factors — including your gut — if you cant sleep at night knowing you have a mortgage outstanding — then talk w your planner and figure out how to get rid of it properly.
For more on this big decision — check out thestreet.com

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