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What should I do if my mortgage is almost paid for?

Ric Edelman
Financial Health
Perhaps you’ve had a mortgage for 25 years, and you can begin to envision the day when you’ll make the final payment. Guess what? You should refinance that loan and restart your 30-year clock.

Here’s why: Because of amortization, by year 25, 70% or more of your monthly payment is principal and therefore not tax-deductible. By refinancing, you restart the amortization process, restoring the tax deduction you’ve long since lost. You should also consider taking some equity from the house to boost your liquidity. 

Ric Edelman is Founder and Executive Chairman of Edelman Financial Services, LLC, a Registered Investment Advisor, and an Investment Advisor Representative who offers advisory services through EFS and is a Registered Representative and Registered Principal of, and offers securities through, EF Legacy Securities, LLC, an affiliated broker/dealer, member FINRA/SIPC.

From the book The Truth About Money (Fourth Edition) by Ric Edelman. Copyright ©1996, 1998, 2000, 2004, 2010 by Ric Edelman, Edelman Financial Services LLC. Reprinted by permission of Harper Business, an imprint of HarperCollins Publishers.
The Truth About Money 4th Edition

More About this Book

The Truth About Money 4th Edition

<p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" class=MsoNormal><span style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">“A single source for what you need to know to put your financial house in order, an impressive piece of work, and very useful.”—Bob Clark, Editor-in-Chief, Dow Jones Investment Advisor<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p><p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" class=MsoNormal><span style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"><o:p> </o:p><p style="LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt" class=MsoNormal><span style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Ric Edelman, America’s most successful financial advisor, has revised and updated his classic personal finance bestseller to reflect the new global economic outlook. In his 4th edition of The Truth About Money, Edelman tells you everything you need to know about money—an essential, yet delightfully breezy and accessible, must-read manual for anyone who may have previously sought the financial wisdom of Suze Orman and Jean Chatzky. The Truth About Money is an indispensible guide to money matters from the man whom Barrons named the #1 independent financial advisor in the country.<o:p></o:p>

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.