You do not say how the money you got from your Mutual Fund was taxed. If it were in a Roth Account and you were at least 59 1/2 years old at the time, then perhaps it was a good deal. However, if it resulted in higher income tax payments or a penalty for early withdrawal...

On the" What If" side, if the Mutual Fund came back to life after you took your money out, the money you might have gained would have easily exceeded the interest saved on your mortgage. Also, your mortgage payments get a tax deduction which decreases the APR for your mortgage.Money has Time Value that can change in an instant. Likewise the value of your home is not fixed and can change. Neither of these are under your control. So sleeping well just because your mortgage is paid off may be an illusion promoted by those who actually control the real value of our money. .