Thank you all for your input. Many good points on both sides of the argument. I'm still working on deciding which path to go down. I do like the idea of putting half towards the mortgage and half into investments. If I do that, I should still be mortgage free in 2015.
To answer a few of the other questions that were asked:
- I do not quite max out my 401K (I put around $15K in last year.) I have enough cushion where I could max it out, but as early retirement is my goal (mortgage freedom is just a stepping stone for me) I do like the flexibility of having investments in non-401K/IRA assets to access them easier. Hoping to be FI by 37 (About 5 years from now.)
- I do know there are ways to access 401K funds before age 60 without penalty, but I personally am not knowledgeable enough about them to throw all of my assets into tax-deferred accounts. This is definitely something I need to brush up on. Any good articles or advice you have would be greatly appreciated.
- Each month I split my surplus between investments and mortgage pay down. I have not devoted 100% of my assets to the pay down as I know the fiscally prudent way to invest is in the market, however, mortgage freedom does hold a certain allure. However, once the pay down is complete, I hope to have an ever-growing snowball of employees flowing directly into my investment accounts each month.
- I do itemize mortgage interest as a deduction and will no matter what the amount is in 2015. I pay enough in state taxes to exceed my standard deduction and will continue to do so until I am FI and decide on a different career path. At this point, I pay only around $50 per month in interest, and that dwindles quickly as I knock off over $1,500 per month on the principal balance.
- I definitely agree that a treat is in store when the mortgage is completely paid off. Though instead of a dinner, I am thinking of a nice tropical vacation! (Michigan winters are brutal.)
Thanks again - I will let you know which direction I end up going.