If you're at a high interest rate now, it may make sense to pay it off and refinance at the current lower rates.
However, it depends upon what you have in mind for your financial future. If you're going to pay it off in cash and have no mortgage, then it makes sense to pay it early in order to avoid the additional interest payments.
However, if you're going to refinance, ask your mortgage broker - or your accountant - how many years you have to remain in the house for you to break even on the refinancing costs.
Also, if you're paying off the balloon mortgage and you don't have to refinance, ask your accountant to discuss with you the virtues of carrying a mortgage versus owning the home free and clear.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions