Why? I was thinking because your investments go down when the market contracts and one could suffer a foreclosure if they lose their investments.
I personally think that although the tax deduction for interest should not be taken away, it should be thought of as something that tempts the unwary to go into debt.
Let me know if my reasoning on this issue is faulty.
not if you made a wise decision when you got a mortgage (which is a type of investment anyway). first of all you shouldnt invest money that you cant afford to lose. investments are not savings unless its a special case.
I was thinking because your investments go down when the market contracts and one could suffer a foreclosure if they lose their investments.
thats the risk you asume when you use investment income as your neans for supporting yourself. most people arent investors like that anyway, and those that are should have a net worth that means they own multiple houses. if they also have mortgages thats still an investment. why would you pay it off? the point of a mortgage is that you can use the cash elsewhere more productively while you still retain use of the asset. if you cant use the money more productively elsewhere then you should be paing off your mortgage. if thats the case youre a shoddy investor and need to save money while you educate yourself.
http://wiki.mises.org/wiki/Walk_Away