Yeah, lets send all of our liquid money to a bank who will then make us qualify
for the money if we need it back for an emeergency or the like. Liquidity in
personal finance it key and a bunch of money tied up in your home is not liquid.
Liquidity needs to be balanced with cash flow. If paying off your mortgage
(after all the aforementioned 'musts' are taken care of) frees up
thousands of cash each month, which you can then use to take the trips you will
deserve at that point in your life, spoil your grandkids like you want to, etc.,
then paying off your mortgage is a good idea. Banks aren't the bad guys
for making you qualify...you're the one asking for help and they're
the ones accepting all the risk. Again, if you haven't amassed enough
savings to allow you to retire/emergency fund, etc, then I agree with lvnthedrm,
your focus needs to be liquidity.
Buying a house and saving for a home are all part of a financial process. I like
Dave Ramsey and how he teachers to have an emergency fund in place before even
considering buying a house. He also teaches to have 15% going into retirement
before even considering paying the house off.
It's an over whelming amount of money for a house, and the interest on the
lone makes it astronomical amount. The faster and sooner the house is payed for
the more money in interest you can save. But your resigned to the dept and hard
to replace the washer or fridge or any of the expensive things that will go out
a few times before the house will be payed for. It's one mounth at a time,
one thing at a time, one day at a time.