With the Standard Deduction increasing for 2018-2025 many taxpayers are contemplating paying extra toward their principal on their mortgage or completing paying off their mortgage.

Pros to keep your mortgage:                                                               

• 3.75%-4.25% is a reasonable rate
• Mortgage debt is “good debt”
• Money not put towards mortgage debt can be put towards additional 401k funding or other investments
• Other needs such as student tuition, emergency reserves

Cons:

• Liquidity-additional payments to principal reduces your cash flow
• If your rate is not fixed interest rates are rising

There is no right or wrong answer; it is a decision to be made by each individual with the assistance of their tax professional and financial advisor.