Pay off home equity mortgage or continue to use the interest for tax deductable reasons?

Question

I have a home equity mortage that i am paying $100/month in interest - $1200 for the year.
I am thinking about paying this off, but is that better in the long run?

Am I better off using the interest for tax reasons or should i pay off the loan?
How much does the interest actually help out?

I am in the    25%     $33,951 – $82,250 tax brackett, whatever this means.

Answer 1

Pay it off.  Why?  You are paying $1200, just so you can get a $300 break in taxes.  Look at it this way:  Give me $1200, I will certainly give you back $300.  I will do this any time you like.  I keep $900, and you keep $300.  See?

Pay it down faster by paying extra to the principle every month.

Answer 2

Unless you're aware of an investment that guarantees a rate of return higher than than the interest rate you are paying on the mortgage, pay it off.

Answer 3

I can't see a situation where it would save you money to itemize the interest deduction vs. money saved by eliminating interest.  

Pay it off.

Answer 4

Hmmmmm.  should I pay $1,000 so I can deduct $250 of it???  Hmmmmmm.  Let's seee......

NO!

Of course you should pay off the debt.