Q: Thanks for all your advice. You have equipped me with life-long tools for using and saving money. It has helped in preserving my marriage and in raising my teenager.

My question for you is about paying off my mortgage. Is there ever a time where it is ideal to pay off my mortgage? Please elaborate.

A: I think there are a number of reasons why you might want to pay off a mortgage.

First, I believe in doing whatever it takes to help you sleep well at night. If paying off your mortgage helps you catch a solid 8 hours, that’s a good reason – even if keeping your cash invested elsewhere would be the better choice financially.

You should also consider paying off your mortgage if you’re heading into retirement or into a period of your life where your cash flow will decrease. If you don’t have to make that payment each month, it can help smooth out your budget and provide you with more resources to do other things.

Finally, if the interest rate on your loan is higher than what you’re earning on the cash, then you should consider either refinancing your mortgage or paying off the loan.

I’m glad to know that my advice has been helpful. With any luck, you’ll get your teenager to tune into the importance of money now, so he or she understands how to save and invest for the future.

Published: Mar 8, 2008