Invest Or Pay Off Mortgage?

The choice between paying off your mortgage or investing your disposable income is tricky, because there are benefits on both sides of the argument. In addition to doing the math and calculating rates of return, you also have to consider risk if you’re going to make an educated decision. By weighing the pros and cons of your choice, you can make the right decision for you and your family.

Benefits Of Paying Down Mortgage


Extra mortgage payments come with many benefits, including shortening the term of your loan and lowering the amount of interest you pay. These advantages are attractive if you’re budget conscious and risk-averse. If you’re nearing the age of retirement, paying off your mortgage means extra financial freedom in your golden years. Also, if you live in a state where you can file a homestead declaration, or the laws protect the equity in your home, your home can serve as liability protection for your nest egg. The benefits of paying down a mortgage are hard to quantify, since many come from individual situations.

Continue reading to reveal the reasons to keep a mortgage.