If you have a sizable nest egg ($300,O00 or more), and just a small amount left on your mortgage (like $50,000 or less), then paying off your mortgage might make sense. If you do pay it off, you’ll still have a large cash cushion left over, and you’ll enjoy being mortgage-free.

However, if your nest egg is small (like under $150,000), then it doesn’t make sense to pay off the mortgage, even if it’s just $50,000, because you’ll need that money for a cash cushion. You might think that paying off your home would give you a source of equity in an emergency. But you can’t count on it, especially if you are no longer working or if your credit rating has dropped because you’re no longer spending. In this case, you might be more comfortable continuing to pay off your mortgage, but perhaps taking on a side hustle to pay more on the mortgage.

As you can see, the numbers are not exact, and what one person feels is enough may
not apply to another person. Always check with your own financial advisor before
making any kind of decision like this.