It used to make more sense to pay off your mortgage as soon as possible, but things have changed. There is no such urgency since the interest rates have hit historical lows.
In that respect, it will be smarter to consider other major entities that eat up your monthly budget.
Here are they in order of importance:
Credit cards. Pay off the ones with high interest rate. In comparison, your mortgage interest rate nowadays may be as low as 4% as opposed to 13% – 23% of your credit card.
Think of your retirement. Make your maximum yearly contributions to your retirement accounts, 401K, IRA or else. In a long run, it would be the best thing you’ve ever done.
Put your kids through college. No matter how many kids you have, start making regular contributions to those 529 plans or other college savings accounts.
You may live a long life. Invest in a long-term health care insurance.
Once you’ve tackled all of the above, you may begin thinking about paying off your mortgage.
Read the full story at USA Today.