To pay or not to pay off your mortgage

Despite the doom and gloom that many are spewing in San Francisco, there are still very many people out there who have the option and the financial wherewithall to pay off their mortgages. Is that a good idea?

From this weekend's USA Today, "If debt makes you anxious, you may be wondering: Should I try to pay off my mortgage — or not? Well, it depends — on your financial circumstances, your time to retirement and your emotions."

"If your mortgage rate is low, say 6% or less, you likely can earn more from other investments. If you could invest in a tax-deferred account such as an IRA or 401(k), the pretax rate of return would be equal to or greater than the post-tax cost of the mortgage"

"The younger you are, the more time you have to make money on other investments. There's no reason why people in their 20s or 30s or even 40s should pay off their mortgage if they're not planning to retire before 65. If you have more than 10 years before retirement, there's time to make money in other investments and build up your savings, says Phillip Cook, a financial planner at Cook and Associates in Torrance, Calif."

"That equation changes if you're close to paying off your loan. If you have less than 10 years left to pay on a 30-year mortgage, you're getting less and less of an income tax deduction. That's because you've paid most of the interest by now and are paying mostly principal. You don't get a deduction for principal payments. So the tax factor is worth weighing."

There are also four real-world scenarios with comparison calculations on whether it's worth paying the mortgage off or not.