The Question
Pay off my mortgage or sell? CPA said not a big difference tax-wise. Will it make sense financially?
Hi-
Interesting question- and it depends on what your goal and needs are.
Is this your primary residence? Do you plan on staying in the home or renting it out? Where would you live if you sold the home?
Things to consider- What other uses could you do with the money from paying off the mortgage? Do you need the extra cash flow (from paying off a mortgage)? Or could you put the money into something that could earn the same or more than what your mortgage payment is, depending on risk level and time horizon?
What would you do with the proceeds from the sale of home? If you qualify, the the first $250,000 ($500,000 if married) above cost basis is tax free.
Paul Doak, CFP(R)
Seattle, Washington area
www.id-financial.com
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