home loan tax deductions
should I pay off my home loan and lose my tax deduction?
Actually it depends on the interest rate and your tax rate.
Normal 30 years mortgage goes around 6%. If you have money to pay it off, you can allocate it to index funds, which can bring you on average 8-10%. This move certainly not guaranteed and requires investment discipline.
I would first maximize my 401k and IRA and then make higher payments on the loan. This way I will have tax deffered grows of my investments, minimize my taxes, will have my house paid off and descent chunk of money to retire.
