[silverleaf]

Let’s assume her mortgage payment is $1500 a month and she pays it for the next 2 years waiting for the inflation spike you mention-

that’s $36K down the drain - she’ll pay $30K to the bank to avoid paying $6K to the govt in taxes

That 30K could be going into investing at the firesale prices of equities in this market, or just be a sure bet build up of her existing cash savings.

[monocle]

What about the lost interest on her cds the principle of which she would have to cah in to pay down her mortage and the loss of her tax deduction.

[jaydubya2]

Last year was the first time my federal standard deduction exceeded my itemized deduction. So, I currently am not benifiting one bit from having mortgage interest to deduct. Something else to consider...it may be time to pay off the mortgage.

[CottonBall]

That 30K could be going into investing at the firesale prices of equities in this market, or just be a sure bet build up of her existing cash savings.

Hello again ;) But if the goal of this statement is for the home owner to build up cash, she already had the cash to pay off her mortgage, presumably.