inpoetry1
|
It's a risk-reward decision.
The effective cost of your house is your interest rate adjusted for tax deductions (exclude property appreciation, which would occur even if you paid the mortgage as scheduled).
As long as you can easily pay the mortgage, it's better to pay off all other debts that are not tax deductible such as credit cards. After that, invest in a Roth IRA if you are eligible.
Then decide on your time frame. I would personaly invest in mutual funds (low expense ratio, no load index funds). But that's because I'm willing to take the risk and I have a long time until I can retire.
In short, the answer varies on your time frame, risk tolerance, and age. If you can, perhaps you should consult a certified financial planner (make it clear up front that you will NOT buy any products from him/her - just an hourly fee for the advice).
Best of luck. |
|
Chris N
|
Well 95 % of American die with the house as the biggest asset . So unless your smarter them 95 % of the general public your better paying off the house |
|
Marty K
|
I'm sure that a case can be made for investing, and certain numbers could back that up. However, I would vote for owning a free and clear house ANY DAY OF THE WEEK! |
|
Screaming Eagle
|
Invest in you retirement account, and pay off house 2nd, or do both at the same time. |
|
lollipop
|
You need a financial adviser. Depending on you mortgage, if a balloon ... get rid of that sucker asap. If it is a 30 year conventional, you can pay a little extra on the Principal each month. That will build the equity faster. And you will still have some left for investing. I suggest you learn all the investment language (you can do that on the Internet) then see a professional to discuss your long term goals. And If you want to adopt, I am available 8~) |
|
doggiecaveman
 |
If you can get a better rate on your investments, great. If not, pay off the debt and make extra payments. |
|
shill13
 |
Pay it off |
|
smilingmick
 |
If you can do both ... it is the best way.
Pay your mortgage down faster by paying weekly.
You mortgage principal will be paid off quicker and you can reduce your mortgage from a 25 yr term to a 17 yr term.
That is smart.
Each pay cheque you should try and have the bank deduct a small amount such as $100.00 or whatever you can afford , then direct it to an RSP. You should look into that with your bank. |
|
Stratobratster
|
Paying off the house is an investment. |
|
gregory_dittman
|
Your house is an investment, since when you are in your late 60s, you can have a reverse mortgage where the bank pays you money. You can't be forced out of your house, but if you don't pay and die, they take the house unless somebody coughs up the money. |
|
tsopolly
 |
I would invest. The reason is a house payment is a big tax deduction and a way to improve and build credit. Also, if you invest you can always withdraw your money if you need to, but if you pay off your house and need quick cash you don't have access to it -- unless you sell the house. |
|
dave_nm_78
 |
depends what rate (and fixed or variable) you pay on your mortgage, and what sort of long term average rate you can realisticly get from investments.
If you pay a 5.5% rate on a fixed rate mortgage, but are agressive and have a long time (20+ years) to invest and can get 9-10% return on investments, its better to pay your mortgage payment and invest the rest.
Most people don't have that kind of time or risk tolerance (this is another key - can you emotionally take losing 20% or more of your money in a bad year? most can't). Pay off the house, if that's the case. |
|
mimaolta
|
Pay off the house. You will save all the money that you would have paid in interest over the rest of the life of your loan. What you would continue to pay in interest would most likely be greatly higher than what you would make in interest on any investment. In addition, your house should continue to increase in value, as most homes build in equity. This proves to be an investment in itself, as you could borrow against it at a later date if you needed. |
|
girl
|
Invest it read some investing tips and more on this site |
|
INACTIVE
|
Getting the house paid in full is great and the smartest investment. Imagine not having to make that mortgage payment??? If something happens, your house is YOURS. Once the house is paid, you can invest some or all of that payment monthly. Make sure you have a fully funded 401K plan which is also a sweet tax-free investment in your future. |
|
| |
|
Homepage 
Financial
Forum 
Investing 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
