Quote:
Originally Posted by lewdog
Part of me says not to either since investing over time should net me better gains.
Hard call though as paying off a house sooner sounds nice too.
|
Quote:
Originally Posted by scho63
If you can make your money grow faster % than the percentage of the loan, you invest it.
It rarely used to be that way when people had 10% mortgages and would only earn 5%-7%.
|
Maybe one can likely earn a higher return by investing, but it's not guaranteed. Paying off a mortgage is a 100 percent return on your loan rate, and it's guaranteed as a long-term return since it lowers your debt over the life of the loan. It also helps to guarantee that you'll never end up homeless, which brings significant psychic benefit, and it diversifies your wealth.
You obviously want to have some liquid savings, and you want to maximize your IRA, but the mortgage comes after that.