In my situation, my sub 5% fixed mortgage is actually a 2.x% mortgage since Unk Sam lets me deduct the mortgage interest – without that deduction my fed taxes would be way higher since I couldn’t itemize.
Why in the world would I want to pay off a 2.x% loan early – I can earn about that much in a CD right now with the chance that I will earn a much better return in the next few years as interest rates march higher (yes I’m in the inflationist camp).
If it makes you sleep better at night, then go ahead and pay off that low cost mortgage. I’ve done that before and it ate me up not being able to itemize…dollars just flew out of my wallet…I’m not going down that path again.
