I'm hoping you can give me some feedback on whether this would be a good idea or a really bad idea.  We have paid all credit card debt and loans excpet for the house.  The really big ones!  I have a 1st mortage of $150,000 and a 2nd mortgage of $34,000.  I also have enoough in an IRA to completely pay off the 2nd mortage.  However, that would wipe out my IRA after taxes and penalities.  I would love some suggestions on whether this makes sense or is a really bad idea.  I'm going round and round . . . the IRA is supposed to be for retirement (I'm 43). . . but does it do any good to have those dollars sitting there while paying on this debt? 

My apologies if this is in the wrong area. 

Never remove money froman IRA. Bad, bad, bad! I'm debt free too but would've never taken money out of an IRA to get there. Just buckle down and focus on paying down the debt the right way.

Don't use your IRA...it will cost you alot of taxes..maybe put you into a higher income tax bracket...Better to scrimp everywhere you can and pay the loans off little by little....have a garage sale....raise a garden....etc....

I appreicate the replies.  I'm just trying to understand if this is really a bad idea or just one we've been taught to believe is bad.   My acount balance is a number on paper.  It goes up and down with the market.  If I cashed in today - my gains would be eaten up by taxes and penalties, but my real dollar investment is still there (based on the amoun't I've put in vs. gains).  I've looked at that against the interest I'm paying and that is why I was asking the question.    

Looking at the market position now, I wouldn't sale. Not only are you gonna take a penalty hit of 10% but you are also gonna pay taxes on that money. Not to mention the market is down right now so you will probably take a loss there. I still contend that it is a bad idea.

You can deduct the mortgage interest if that works for you on your taxes....you will PAY taxes to cash in the IRA.  You've done a great job saving up the money for the IRA...the house will take care of itself.  A house is "good" debt if there is any such thing! 

terribly bad idea. before long, you will be 66+ and wonder where your retirement is going to come from.  money in ira  compounds up and  goes down depending where it sits. if you start over, its way behind where you are now. pay double house payments  when you can and, unless you lose a  job, you can have it paid off in about half the current time like we did.