Is it smart to pay off your mortgage?
If you have some extra cash and thinking about sending additional principal on y0ur mortgage read this first. Check what is your mortgage rate. If it is under 7% you might be better off not paying the mortgage and invest the funds in I-Bonds.
The reason is current high interest on U.S. Treasury Saving bonds. I-Bonds now offer 6.73% interest rate. It is also important to note that interest is state and local tax free. Also federal tax deferred till you actually cash the bond.
At the same time you will get tax deductions on your mortgages. Depending on your tax bracket it might create another substantial saving. With this current situation you can be much better off with not paying your debt and invest the cash in I-Bonds.
