flu –
I think you know I paid off my house prior to retiring early. For me it allowed me to plan a retirement budget that was MUCH smaller than one that included mortgage P&I. It’s a little different situation than yours, since you’re younger and still working. If I was still working I would have put the extra money into investing… I have a fairly conservative asset allocation (60% equities, 40% bonds… 100% in index funds rather than individual stocks.)

The piece of mind having no mortgage is nice for me. Others feel differently and would rather have debt and more money to invest. We’re all wired differently.