Using data from the Survey of Consumer Finances, we show that about 38% of U.S. households that are accelerating their mortgage payments instead of saving in tax-deferred accounts are making the wrong choice…In the aggregate, these mis-allocated savings are costing U.S. house-holds as much as 1.5 billion dollars per year. The Tradeoff between Mortgage PrePayments and Tax-Deferred Retirement Savings - Federal Reserve Bank of Chicago - White Paper: 05-2006.

“It’s risky and bad planning to have too much of your net worth in your principal residence. No prudent stock-market player would put 60% or 70% of a portfolio in just one stock, but millions will hold that much or more of their total net worth in just one house.”
Wall Street Journal Online - March 15th, 2007

If you ask yourself whether you should pay off the mortgage before you retire, your first impulse may be to say: “Why not?” Many people have an instinctive desire to own the house free and clear before they stop working, figuring the absence of a monthly mortgage payment will help relieve the pressure of living on a reduced income.
…But prepaying your mortgage may not be the savviest move, particularly from a tax standpoint. This is especially true when faced with the choice between fully funding a tax-deferred 401(k) or adding to your mortgage payment each month. It even applies when the alternative is to invest more in a taxable account. Business Week - February 5th, 2007

“Some advisers say payoff your mortgage. We say leverage up and invest.”
FORBES - December, 13th 2004

The Equity in Your Home is a big disadvantage! “By having cash available for emergencies and investment opportunities, most homeowners are better off than if their equity is tied up in their residence. While employed and in excellent health, borrowing on a home is easy, but most people, especially retirees, unrepentantly need cash when they are sick, unemployed or have insufficient income. Obtaining a home loan , under these circumstances can be either impossible or very expensive.” CHICAGO TRIBUNE

“If you own a home you are sitting on a potential fortune that can safely and confidently be put to work to build a massively abundant financial future.” - Marion Snow - Stop Sitting On Your Assets

“Those who lack liquidity when times get tough have no choice but to liquidate their assets at low prices and survive the best they can. Americans who possess liquidity during tough times can peel off dollars and keep their credit worthy and meet critical expenses.” - Missed Fortune 101 - Douglas Andrew