You may remember your grandparents talking about how they moved into their home as newlyweds, and you may remember many holidays at the dinner table of this same home. For homeowners like these, paying off the mortgage as fast as possible may be a good idea in order to pay the least amount of money in the long-term.

However, today most American households move every five to seven years. So it’s important to consider whether making those extra mortgage payments per month or per year are really beneficial to you.

Pay Off Other Debt or Invest?

For homeowners planning to move in a few years making extra mortgage payments in probably not a good idea. Why rush to pay something off that you’re going to sell or refinance the mortgage on anyway? The additional money put toward the mortgage would be better spent in a retirement savings account, college savings plan or paying down bad debt such as credit cards and installment loans.

Your Age Plays a Role

There are specific situations where it can benefit you to pay off your mortgage early. For example, if you are getting ready to retire, have a small mortgage balance and already have plenty of retirement savings accounts, then it may be a good idea to completely get rid of your house debt.

Tax Implications

Tax brackets also play a role in your decision to pay off your mortgage early. For the average homeowner, the interest you pay on the mortgage is fully tax deductible. The first half of a 30-year or 15-year mortgage is the time you can maximize the interest tax write off of the mortgage. This means, that if you do have a 15 or 30-year mortgage but haven’t had the mortgage for seven or 15 years, you may not want to reduce your interest write off by paying your mortgage off early.

It’s also wise to consult a professional regarding your financial situation and whether it’s prudent to pay off your mortgage early. Discuss possible options for the money if you decide to not make extra payments like funneling it into an investment account or using it to pay off high interest debt that is not tax deductible.

Another professional source of advice is your accountant or tax consultant. They can tell you how paying off your home early affects your tax situation.

Don’t simply assume the sooner the better when it comes to paying off your mortgage. There are advantages and disadvantages so examine your situation, future plans, financial state and talk to a professional to understand and weigh all the pros and cons.