I think you are right and this is an aerial yellowjacket nest. In case it is of interest, aerial yellowjackets and paper wasps are actually very closely related. They share the same genus (Dolichovespula), but are different species. The other types of yellowjackets, which typically nest in the ground, are in a different genus altogether (Vespula). 

The colony in the nest will die at the end of the season and will not reuse the same nest next year.

Here is a link with more information about these different types of wasps. 

Generally speaking, if the nest is several feet off the ground--at least 8ft--I would not worry about the wasps harming anyone. Wasps typically only attack if they feel threatened. If you were going to have roof work or gutter work done, then I would remove the nest. 

However, if you are concerned about wasp stings, you have a couple options. First, you can contact a professional pest company to spray and remove it. That is the safest option. The do-it-yourself option is to purchase a wasp or hornet spray that is in a can and spays several feet. Wait until almost dark, when all the wasps have returned to their home for the night, then aim and spray directly into the entrance of the nest. 

These are powerful pesticides! Read the label and follow the directions exactly. Make sure you wear the proper protective equipment. The spray is highly pressurized and goes many feet at once. No other humans or pets should be around when you spray. 

Spraying a nest yourself is not without risk. There is a chance some of the wasps escape and come after you. I highly recommend running away immediately after spraying! However, these spays are on the market because they are effective and many people use them without negative consequences. 

I would leave the nest attached to the house until it gets cold to be sure there are no remaining wasps in the nest before you remove it. 

If you choose to spray the nest yourself, please be aware that it comes with risk and follow all of the precautions on the can of wasp/hornet spray. The label is the law and there to protect you. 

It is unlikely that they will to move into your home. This type of wasp prefers to build its nest in a sheltered location outside. 

There are other types of wasps/yellowjackets that might get in your home (namely what is called the German yellowjacket), but the ones you have probably will not. Wasps that get into your home are looking for an entry point. Close up any holes in your siding, soffits, or foundation. 

Yes, they may come back next year and build a new nest nearby. This can happen even if you remove this nest (a new queen can find your house and decide it's the perfect spot). Keep an eye out for new nests being built in the spring. They start small. The queen builds a few cells and lays eggs in them. They hatch and become workers, building around the cells to make a bigger nest. If you can find it at this point, it is much easier and less risky to remove. 

I know that wasps can scare people, but these insects do us a service. They frequently eat pests, including the caterpillars that eat our cabbages, broccoli, kale, etc.