Should you pay off your house?

It is a nice feeling to pay off your house.  Not everyone should pay off their house even if they can afford it.  Consider the interest rate you are paying.  If it's 2-5% or even 6%,  you could be going backward financially.

Cash is king and we are in turbulent times now.  Everything costs more and it's important to be in a position to pay for living expenses and have funds set aside for emergencies.   

Investments are paying well today, even money market funds are paying more than 5%.  Consider if you have a 4% loan on your house and you can invest at 10% or more.  If you have the funds to pay off your house then you can do it at any time.

Many people pay off their houses just to finance them later with all of the costs involved and perhaps a higher interest rate.  If you have plenty of money, this may not apply to you.  If you have an 8% interest loan today and you can pay off your house without making you cash-poor, that's another strategy.

The most important takeaway is to do critical research to compare investments against the idea of parking your funds in your house.    If you need money and it's all in your house, it will be hard to obtain immediately when needed. 

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