My wife asked me today what would happen if I went on TV and won a lot of money on a quiz show that tops out at a million dollars. She hedged down to a couple hundred thousand.
Would we pay off the mortgage? I explained that if we had a safe investment that could return more than the interest rate on the house plus inflation -- we'd do that if we were economically "rational".
But then I explained that even though I know this, I would instead pay off a chunk of the mortgage instead.
Damn present bias.
Even when you know better, you don't do better.