According to "The Millionaire Mind" 60% of the
millionaires surveyed hold mortgages.

According to "The Millionaire Next Door" a little more
than half hold mortgages.

But according to the IRS study, almost all millionaires
can pay off their mortgages whenever they want.  Take
a look at the average home value compared to the
average cash holdings for millionaires.

                                  Money Market &
Net Worth(mm)    Home Value(k)    Cash Value(k)   Cash/Home Ratio
$1 to $2.5       $221             $115            0.52
$2.5 to $5       $354             $179            0.51
$5 to $10        $546             $285            0.52
$10 to $20       $780             $417            0.53
$20 & over       $1,075           $1,153          1.07

ALL              $278             $148            0.53

In other words, according the IRS study, millionaires 
on average hold at least half the value of their homes
in cash or cash equivalent securities.  They can pay 
off their mortgage at any time.  They don't have to
work to carry their mortgage.  They choose to work.

Take a look when you consider stock holdings.

                                  Stock of Public
Net Worth(mm)    Home Value(k)    Corps Value(k)  Stock/Home Ratio
$1 to $2.5       $221             $323            1.46
$2.5 to $5       $354             $868            2.45
$5 to $10        $546             $1,881          3.45
$10 to $20       $780             $3,857          4.95
$20 & over       $1,075           $17,949         16.7

ALL              $278             $736            2.65

Stanley suggests that 80% of millionaires work.  If one
were to look at the statistics above, it becomes clear
that they don't work because they need to pay off big
mortgages.  They could easily do that with current
assets.  They probably work because they like what they
are doing.

The above statistics also suggest that the wealthier
one becomes, the more "frugality" he can afford.  So
much for the theory of "Lifestyles of the Rich and Not
So Smart".

LF  :-)