Keep stock portfolio or pay off mortgage?

ARM will change in 2010. I've owned it for three years. I owe about as much on home as I own in an investment portfolio. Is it better to sell off the investments, take the tax liability, and pay off the mortgage? Right now I'm using the portfolio to pay the mortgage as I stay at home with my kid and my husband is a student. So refinancing is out of the question. Any thoughts, wise YA folks? I really don't know how to make this decision.

Consider this, you pay off the mortgage but have no savings. How do you continue to stay home and go to school? If refinancing is out of the question now, it will be much worse if you had no assets and were looking to take cash back out of the house. Make sure your investments are widely diversified and keep your assets fluid. Once you or your husband are back to work and as you approach the ARM change in a couple years, you will be better poised to make this decision.

This is not intended as legal or financial advice. Please consult your individual adviser, or contact me to provide all the details before taking action.

If you have any other questions, or need assistance, please contact me via my website http://www.slarson.com/contact or email me directly at Steve@SLarson.com

Would you borrow more money to pay off the house?? If not pay off the house and start clean. That is what you are doing if you don't use that money to pay off the house. Look at your house market area, if not great that may push me to not paying it all off.