Help me find a good web article on early payoff of mortgages?

All articles I can find on the web advise people AGAINST early payoff of their mortgages, saying ';there are better uses for your money';.





Can you help me find an article that advocates FOR early payoff? Please post the link.





ThanksHelp me find a good web article on early payoff of mortgages?
I don't know of any articles, but the AGAINST group usually point out the tax break that you will loose from paying it off.





HOWEVER, I usually go by the rule of thumb that unless you can find a savings account that pays a higher rate then what you have to shell out for your mortgage. Then pay the sucker off.





Make sure you don't have a pre-payment penalty on your mortgage though.Help me find a good web article on early payoff of mortgages?
There is a lot of misinformation about the benefits of not paying off a mortgage and very few sites that advocate paying it off.





As an example, Dave Ramsey has advised people not to pay off a mortgage (even for people in their 60s) since he states that you can make over 12% in the market with your money. His facts are totally incorrect. Even if you purchased the DOW at the low of 1932 and sold it at the high of 2007, the return would have averaged 8% APY but if you purchased at the high of 1929 and sold at the low of 2009, the return would have averaged only 4.5% APY.





Then there are periods of time that the market has performed very badly. As an example, during a 12 year period during the 1970s-1980s, the market did not increase in value but CDs were paying double digit interest rates. If you had invested in the market during that time, you would have lost 50%-65% of your investment due to inflation. Then of course there is the last 9 years where the market is currently about 30% lower than it was 9 years ago causing losses of well over 50% in real terms (inflation adjusted).





The assumption is that if you hold stocks long enough, the market will perform better than your mortgage. Unfortunately we do not have an unlimited life expectancy and may not be able to support ourselves (to make those big mortgage payments so we could have money to invest in the market) without withdrawing our investments during the hard times when the investments are significantly down making our returns from the market near zero or even losses.





If security and comfort is important to you, pay off your mortgage. No one can predict the future.





The advice that you are getting is similar to the advice that banks accepted over the past several years. Their risk management indicated that they could loan money to anyone and they would always make a profit. Now the banks are in debt $2.7 trillion (according to IMF estimates) and it will take them about 20 years (if they can return to maximum profitability) to pay off that debt. Many will likely become insolvent in the future when interest rates rise once again.