Why Paying Off Your Mortgage Isn’t Always Best, by Advanced Financial Concepts Most people think that paying off their mortgage is the best method to achieve financial freedom and flexibility. Although generally true, there are some cases where it can be financially damaging. Often a person who has just retired wants to take a weight off their mind by paying off their mortgage. However, the most common means to do this is by withdrawing a large sum from a retirement plan. This can be a mistake since pension plans are tax-deferrable and more flexible than keeping money invested in a house. Another factor to consider is inflation. Since the original sum borrowed remains the same, over a long period it becomes worth a smaller amount in relation to the average income. This means that borrowing over a long period rather than paying back in a lump sum sooner can often be beneficial. About the author: Based in Houston, Advanced Financial Concepts provides advice to clients wishing to make the most of their finances. Advanced Financial Concepts was founded by Justin F. Shaw.