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Message:: [QUOTE="Clawcoins, post: 3114573, member: 77814"]$10K.   Ouch.  A hefty sum to do that. To me, $6k was the max calculated "Swallowing Point" - where it doesn't really hurt to pay that cash out.  $10 would be a stretch for me. But if you have the cash I recommend it.On all the articles I've read they've always mention the "accounting principal" of using that money to pay down the debt, and also the "accounting principal" of why you don't want to pay your house off; both of which is house equity that gains NO interest. but, looking at the "Economic" and "psychological" aspect of paying the house down and having NO house payment.  You have a LARGE cash flow after that as you no longer have a house payment. Using the accounting principal ... you would then think that renting is preferred over buying.  But then you'll ALWAYS have a payment, that is ALWAYS (more likely than not) going up.  Conversely paying off your mortgage is a far better thing that no one highlights; especially if you would like to retire one day whether sooner or later.  And like you calc'd you no longer pay interest, a further savings. Also, if you income is stagnant, that rise in rent with inflation eats more of your income.  Imagine having no rent/mortgage?  A lot of spare cash after that and not having to worry about the payment + interest. Although those pesky city taxes still exist. In being in my current house for only 5 years, I've also knocked off 5 years of steady payments.  With the Reamort ... the paydown is accelerating as I plan on reamort every 3 years now. Also, I don't know what you interest rates are, but maybe a refinance might help everything overall even with certain fees.  But I recommend a Credit Union as many have much, much lower fees - although some credit unions work about the same as many banks so research is key.[/QUOTE]

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