Why should I pay off my mortgage and give up my tax deduction?

This is a great question. The challenge for us is overcoming the years of brainwashing from the "experts"....."The last tax shelter myth".  I think that having a fundamental understanding of this subject is fairly important considering your financial future is at stake.  Especially, since 96% of Americans fail financially in this country!

We'll start by examining the "Average American Family".  We've named this family Joe and Susan Lucky. Let's say that the Lucky family is in the 28% tax bracket.  For every $1 of interest that they pay to their mortgage company, at tax time, their tax deduction will be 28 cents.

  Let's play a game for a moment...you give me a dollar and I'll give you 28 cents in return.  Now, that's a good deal for me, but you are losing 72 cents everytime you give me a dollar.  If Joe & Susan Lucky (our average American family), decided NOT to pay off their mortgage because they, like most Americans, have been duped into believing the "tax shelter" myth, THEY WOULD'VE PAID $138,116 IN INTEREST SO THEY COULD SAVE A MAXIMUM OF $38,672 IN TAXES!  No matter how you slice it, looks to me like they still lost at least $99,444!

If you have to have a mortgage, the "tax deduction" is a good thing, better than nothing.  But, with a good Debt-Elimination plan, you should only have to deal with a mortgage for 5-7 years!  At that point, let the government keep their 28 cents, and you keep the 72 cents!  There are no good reasons for NOT paying off your mortgage, don't let the so-called "experts" try to convince you that there is.  Here's the true definition of MORTGAGE....Mort comes from the Latin word mortuus, meaning "death" and Gage, meaning "Pledge or Grip"...in other words Mortgage means...DEATH GRIP! And, with all the interest that Americans give to their mortgage company, it can choke you to financial death.

The fact is....You will never pay more in taxes than you will in interest, if you go full term on your mortgage.