1. You need to look at not the overall interest rate of your mortgage, but, instead the actual interest you are paying in the last few years of your loan. Since, in the last few years of your mortgage you are paying primarily principle. In my case, it turned out that my effective interest rate was only 3.4%

2. In order to payoff my house, it meant that I had to take money out of my 401K for that year. This mean that the year I would take out the money my effective tax rate would go from 21% to 29%. So, I would have to give the government a nice chunk of change that year for the “right” to pay off my mortgage early.

While I would love to retie debt free. I only have to earn about 2.5% on my money to make more not paying off my house than paying it off. Did I miss something here?

BTW, love you site!!!