Originally Posted by
Std Deviation
Not necessarily. It is situation specific with numerous variables. Paying off the mortgage makes sense for some if math works. They'd pay more to the bank than the deduction from the IRS. It's also nice to have the security of never having to work again because you owe no one. Don't like the job you have? See ya boss man. Still need deductions? How about charity donations. Imagine that - helping others.
having cash in pocket is 100% more secure than having a paid-off home (liability) or a paid-off student loan (pointless, what are they going to do if you have to stop paying because some other bill came up? repossess your college degree?)
The cost of healthcare is going through the roof every year from here on out. Soon the only good/timely healthcare will be cash only, direct payments... if you can even find it. If you or your wife gets sick, you're going to want that cash instead of a paid-off house (what if the housing market tanks and you can't sell it if you need to?) or a paid-off student loan (they don't exactly offer College Degree Equity Lines of Credit at your local bank)....
Cash is king gentlemen. If you've got some extra lying around and you're looking for something to do with it, turn it into something that cash-flows monthly. Don't jeopardize your financial security just to pay off a loan.
You could probably buy a decent house with the amount of cash it would take to pay off that student loan, rent out the house, take the extra cash flow from the house (after paying the mortgage) to make the monthly student loan payment, and still have some extra cash coming in. Plus you'd be building equity at the same time.