So you want to pay off your mortgage early, why?
Everyone (who are they) says pay down your mortgage, opt for the 15 year instead of the 30 year; refinance for better rates.
Why send good money after bad. The IRS wants to give you money, so take it. If you make extra payments, get a shorter amoritization period or refinance and pay financing costs you are not saving any money.
To have your cake and eat it too, I recommend to my clients to take the cash-out-of-pocket difference between a 30 year mortgage monthly payment and a 15 year mortgage payment and use it to purchase an insurance policy that accrues at a rate that enables them to pay off their mortgae early. This cash difference usually will enable the individual to pay off the mortgage in about 16 to 17 years.
Whats the advantage? The borrower gets to deduct the interest on a 30 year payment instead of a 15 year payment ( thank the good old IRS) for the time the mortgage is in place. What happens if you don't live there for that amount of time? The policy is good until you cash it in to pay off the mortgage of your choice. You could also cash it in to pay for your kids college.
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