Tax consequence of paying off my mortgage?
I own a house I bought in 3/2001 and paid $300,000.00.
I have a loan w/ Quicken at 3.25% with a balance of $160,868.32 and a monthly payment of $1442.06 (real estate taxes and homeowner's insurance are not included in this payment).
Each payment I make I'm paying $1003.66 in principal and $438.40 interest (well this does adjust downward as time goes on). I paid $5,534.06 in 2016 in mortgage interest that I'll deduct in my 2016 tax return.
SHOULD I Pay off my mortgage?
So seems the point is that unless I'm making at least 3.25% or better on the stockmarket investments I have I ought to pay off the mortgage?
Or, do you see this as a 'no brainer' and I simply ought to pay off my mortgage now?
I have to ask what tax ramifications I'll have if I pay off the house? I assume none, other than the reduction in my deductions for mortgage interest? I understand the big house tax event is when I sell the house...