Please tell me the right answer

[oracles]

i have a 15 year conventional loan for my coop at 5.25%

I only have 2 years and 5 months left on the mortgage. 

I have enough to pay the remaining loan in full and currently I see that I am paying 55 dollars in interest.(it goes down every month)

should I pay it off or just continue to pay monthly until done in September of 2018. 

I know I will save money on no longer paying the interest but doesn't it help me at tax time as well?

also can someone help me figure how much I will save if I paid it all off now?(how much in interest I will not have to pay)

thank you all for your help 

[StartingOver10]

Congratulations on the almost paid off mortgage!  You can have a mortgage burning party when you are completly paid. Do they still have those?

i don't know how much the interest is helping you anymore since it is such a small amount. You will need to contact a tax professional to calculate the difference in your tax filings between having the mortgage and not. By the time it gets to the stage you are in now, you generally do better with standard deductions than itemized unless you have other deducable expenses. 

Some of us prefer to be mortgage free.  Some want to pay until the last possible moment. When you are this close to payoff it is personal preference.  For me, if I had the funds, I would pay it in full and make sure the mortgage lien is released (Mortgage Satisfaction filed and recorded).  Not everyone feels the same.

[Anonymous]

It depends. If the money is just sitting there burning a hole in your pocket (or bank account), then you can pay it off if you feel that is best. However, if you have another vehicle or strategy where your money can be better utilized, that option may be worth looking into.

[p-]

The morgage interest deduction reduces your taxable income.  For example, if your taxable income would be 100k, and you paid 5k in mortgage interest, your taxable income would be 95k.  If your tax bracket was 20%, you would pay 19,000 instead of 20,000 in tax.  You spent 5k to get 1k back.

Except in rare cases where the deduction moves you to a lower tax bracket, it is unlikely to be a net gain.  In other words, you will not get enough tax savings to pay back what you gave the bank.

In fact, you might examine your tax situation and determine if you are taking the standard deduction.  If your mortgage interest is that low, the standard deduction might be better anyway and it doesn't matter.

The argument is often made to pay down mortgage debt last because of this discount, and it makes sense if you have a car loan or credit card debt to pay that first, especially if the net interest cost is higher than your discounted interest after tax savings.  And some advocate for building up savings or retirement accounts first, because of the net gain in growth offsets the cost of the debt.  

But if I were in your shoes, assuming the payoff doesn't wipe out your emergyncy savings, I'd pay it off.

[oracles]

Thank you all for your responses, I guess I should ask my accountant if the interest on the mortgage is helping me anymore for my taxes.

i have to see if it is better to invest the money or pay off the mortgage and save 800 dollars in interest.