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iamdb wrote: I voted that I could pay it off but choose not to, but such an open ended question makes little sense.

In our case, we have a 30-year fixed loan at 5.5%, with a loan to value under 20%. Deductablity of the interest reduces the effective rate to less than 5.5%. Our long-term return on investment has well exceeded 5.5%, and our money is in several IRAs. Thus, it makes little sense for us to pay off our house loan even if it might feel good to do so.

But you might well imagine other situations in which paying off a mortgage makes sense. A high interst rate or a variaable rate mortgage come readily to mind, situations where return on investment can be expected to be less than the cost of the loan.

The option you should have provided: It depends on circumstance.

I think that it always depends on the circumstances. Arguments can be made for either choice, but what I was looking for was a simple "What proportion of retired fools have decided to pay-off their mortgage?"

So far, 60% of Fools have answered as you. "I could but choose not to."

At 5.5%, I can well imagine that paying off doesn't make a lot of sense for you. I'm at 6.125% - closer to what I consider the tipping point. After all, where else can I get a zero-risk 6.125% return on my non-IRA money?
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