2006-09-19 09:04:35 · 7 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Most likely invest. Especially if you can do it in a tax-free vehicle like a 401-k or IRA.
The key element is the tax effect. Interest on the home returns cash from the tax man. When you factor this in the effective interest on your home is probably a lot less than the expected market return from a diversified portfolio. Thus you will end up with a higher rate of return than the home pay-off.
2006-09-19 15:41:47 · answer #1 · answered by MagicalMke 4 · 0⤊ 0⤋
What is the interest on your home mortgage? If you can get a better return on your investment than your home mortgage interest rate, it's probably better to go that way. The other thing you have to consider is that if you pay down your mortgage, you will have less interest to deduct from your taxes, so you need to run the numbers for your own situation there.
2006-09-19 16:15:09 · answer #2 · answered by Allen 3 · 0⤊ 0⤋
It all depends on your mortgage rate and type. If its a fixed rate under 6%, than even a conservative investment would bring you a better yield. For adjustable or high rate mortgage its probably better to pay off the principle.
2006-09-19 20:00:03 · answer #3 · answered by svikm 3 · 0⤊ 0⤋
invest and use the interest to pay off your mortgage. Once that is paid you will still have your principle and than will be able to save the interest.
2006-09-19 16:07:54 · answer #4 · answered by Faith M 2 · 0⤊ 0⤋
This is an absolute no-brainer. Would you borrow $$ against your home to invest? Of course not. Pay off the house, then start on an investment plan, carefully building your portfolio to reflect your age, time till retirement & level of risk you are comfortable with.
2006-09-19 16:17:15 · answer #5 · answered by Chance Devereaux Yankee 1 · 0⤊ 0⤋
use it to pay on the mortgage... that is an investment... probably the best one
2006-09-19 16:12:48 · answer #6 · answered by eldridgejoe 3 · 0⤊ 0⤋
Pay off your mortgage....now you have lots of options with your cash
2006-09-19 17:02:56 · answer #7 · answered by basport_2000 5 · 0⤊ 0⤋