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Author: bacon Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5068  
Subject: Re: Pay off Mortgage or Max 401 / IRA Date: 7/18/2007 9:30 PM
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Does it makes sense to pay down or even pay off my mortgage instead of maxing my 401k and IRA the following scenario:....
I agree with another poster in general. However, you don't say how long it is before your mortgage is paid off, only how long until your interest rate resets, and the duration should be considered, also.

If it's just a "few" more years (your definition of "few"), it might be worth it to pay off the mortgage, clear the books for retirement and free up some cash flow around the time you're retiring.

However, even if the interest rate resets higher in 2010, you're likely to be doing better than the mortgage interest rate in investment return--and that's additional money for your retirement. And you can't have too much money for your retirement. You don't know what's going to happen in those years, and it's deucedly hard to find extra money after you've left the work force.

Eric Hines
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