Power Marketplace’s public service journalism 💙 Give Now
Ask Money

Goodbye, bank

Chris Farrell Jan 13, 2012

Question:  My mortgage is down to $27,000, which I can pay off after topping off my cash reserve (1 year of expenses). Is there any reason not to do this? My interest rate is 4 3/8 percent. I’m getting about 1 percent in my money market account. I have no other debt, and my 401(k) and IRA are maxed out. Ken, Portland, OR

Answer: You’re in good financial shape. You’ve set aside a year’s worth of savings. You have no debt other than your mortgage. You max out your retirement savings. I’d pay off the mortgage, own your home free and clear and live debt free.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.