The reality of the recent global economic recession is that it’s no longer vogue to live beyond your income, consuming more than you earn and be in debt. I know, I know that's a “no duh” observation.
But not all debt is necessarily bad or created equal. While I would encourage everyone to pay off any outstanding consumer debt (e.g. bank credit card; retail credit accounts; auto loans…etc.) as quickly as possible there is one type of debt that I would not rush to reconcile completely. That’s your mortgage.
I know the housing market meltdown has been devastating and most of us took a double digit loss in our home valuations, but here’s why you shouldn’t necessarily pay off your mortgage right away if you happen to walk into a windfall of cash via an inheritance or other lump sum distribution.
While such hypothetical windfalls might be wishful thinking here are some considerations to keep in mind:
