2007-06-21 00:11:16 · 6 answers · asked by Dave G 2 in Business & Finance ➔ Personal Finance
I think a lot depends on your age and whether you intend to remain in the house and for what period of time. If you are nearing retirement and are already close to your goals, maybe go for the mortgage (unless you have a very low rate or there is a tax advantage to keeping the mortgage). If you are very young, you could do some sort of split...upping the princ pmt on your mortgage while investing some in tax-deferred type vessels. You don't say if the disposable is a lump sum or a monthly increase in stream...not really enough info to make a determination but if I were going to remain in a home long-term, I would lean to the mortgage payment. Unless I had some hot stocks....
2007-06-21 01:05:41 · answer #1 · answered by saurus3118 5 · 0⤊ 0⤋
I would definitely advise to pay off your mortgage - the feeling of freedom is fantastic. If anything bad happens financially in the future at least you are secure in knowing that whatever happens you've got a roof over your head.
What I would reccommend, though, is that you try to save the amount that you were paying for your mortgage each month - that you will end up having the best of both worlds - no mortgage but some savings building up.
2007-06-21 00:20:10 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The answer depends on the after-tax interest rate you are paying on your mortgage and the tax bracket you are in. If your rate is, say, only 5%, and your gross salary is $50,000, you can probably do better with tax-advantaged investments like IRAs or with stocks rather than paying the mortgage off. When calculating this, don't forget to calculate the change in the federal income tax you pay, which will likely rise if you are only taking the standard deduction because you aren't itemizing your mortgage interest anymore. In short, it depends.
2007-06-21 03:48:12 · answer #3 · answered by Muaranah 3 · 0⤊ 0⤋
Pay off your mortgage, which in itself is an investment.
2007-06-21 00:14:57 · answer #4 · answered by Mark C 4 · 0⤊ 0⤋
the sensible option is to pay off the morgage that way you free up more disposable income per month. investment is high risk.
Maybe once you pay off your morgage .. you can invest a little each month ...
Or if neither of the above suits you i could spend it for you i will show you all the receipts xxxxxxx
2007-06-21 00:16:09 · answer #5 · answered by sammie 6 · 0⤊ 0⤋
I think the answer is yes!
Do both (my wife and I did). In the 90's we were able to pay off the house and invest in the stock market equally. The result is.... no house payment & more retirement benefits.
For us (unfortunatly) I had to go on disability two years ago. Being on disability with no monthy house payment has made a money crisis manageable.
2007-06-21 00:30:38 · answer #6 · answered by Common Sense 7 · 0⤊ 0⤋
Pay off the mortage and use the money saved to invest. That way you gain with rising interest rates.
2007-06-21 01:06:24 · answer #7 · answered by Barbarian 5 · 0⤊ 0⤋
Give it to me please? only joking pay off your mortgage!
2007-06-21 00:19:30 · answer #8 · answered by Anonymous · 0⤊ 0⤋