<p>I am in a similar situation and am considering paying off my mortgage. I am risk adverse and do not invest in the stock market. I am paying 4.75% mortgage interest and getting 2% on my CD’s without adjusting for taxes, so I feel that I am losing money. I have a HELOC in case of emergency. A banker recently told me that when I reach a point in my mortgage where I am paying primarily principal it makes sense to pay it off. However, even with some interest deduction I am losing. I would like to free up income to pay son’s tuition and cover daily expenses so will probably pay it off. While I need to save for retirement, I don’t see how paying a higher rate of mortgage interest than I can get on investments is saving.</p>
<p>The only reason I can see not to pay off a mortgage is if you feel you would need to borrow money in the near future. For instance, I would not pay off my mortgage if I needed to borrow money for my son’s college expenses.</p>