Paying your mortgage off early is the same as investing the money in a fixed rate investment with a guaranteed return equal to the interest rate on the mortgage.
Giving up $25K in cash to help payoff a mortgage MAY BE GOOD.
To gut and re-phrase the old real estate axiom “it depends, it depends, it depends.”
$25K can get you through some generally, un-anticipated tough spots like sudden job loss, health emergencies and civil strife.
Pay out the $25k, then lose your income stream tomorrow, you have fewer choices.
Pay out the $25K, uncovered health issues could wipe out any cushion.
If you lived in Ferguson, and paid out $25K towards your property, now your property is worth less, you lose.
If your rate is low and fixed, role with it. Wait until the $25K will actually PAY OFF the mortgage, then pull the trigger, MAYBE . . .
Make sure you have plenty of other CASH CUSHION, liquid assets, to meet significant un-covered emergencies.
Do some due-diligence about where you live. “I’ve lived here all my life” didn’t save folks in South Central, Watts, Newark, Detroit or other region under civil strife.
$25K gets you started on a bug-out plan.
Also, for those of like-mind, don’t forget about G-d’s grace. You have what you have from your hard work, AND with the grace and benevolence of our Lord & Saviour.
Holding on to $24K and throwing $1,000 to your favorite charitable organization may return un-told riches to you and your community.