The Hill News

It seems obvious that you should always pay off your debts as soon as possible, but there actually are some situations in which paying off one’s mortgage might not be one’s top priority.

A mortgage, for example, might pay for itself if the rate of inflation exceeds the interest rate. And, indeed, this has always been the case: The store value of money is 2.5 to 3.5 percent; rarely has it gone higher than that. Interest rates are at record lows and, not unrelated, inflation has been high due to the Federal Reserve’s two rounds of quantitative easing.

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