Should i be saving or paying of my mortgage?

Answer 1

Your long-term investments can earn about 9% in the stock market, which is probably more than the interest you're paying on the mortgage. So in that case, you're better off investing than paying off the mortgage. In addition, extra money paid on your mortgage is hard to get back if you need it. It's much easier to get your money back by selling some investments than to borrow against your home equity.

If you have any high interest credit card debt, you should pay it off before either the mortgage or investing. Also build up a cash reserve of 3-6 months' expenses.

Answer 2

There are many factors when answering this question!
Age?
How long do you plan on living in this home?
Do you have a suffecient retirement plan?
How much debt do you currently have?
kids?
student loans?
etc...the list goes on!
These are all extremely important things to consider before deciding to pay off a mortgage! If you are young, you know this is not the house you will retire in, you have no retirement plan or investments, then the answer is simple. Your mortgage is the LAST thing you want to shove your money into! Now, if your 60+, you love your home and will never move, plus you are retiring soon then yes, of course but, it's still not necessary.
Everyone has a different situation and there is not 1 right answer to this. We have been told by our parents and the older generations that paying off your home is "a good thing" Well not so much anymore. Times have changed and unfortuantely the basic FIXED RATE MORTGAGE is what all of our parents had. They expect us to do the same! Don't do it we won't get the Social Security check when we're 65 and most of us do not work for the same company for 30+ years so forget the PENSION check too, what fit their lifestyle doesn't necessarily fit yours! Think about it, it makes sense!

Answer 3

All depends on how much is outstanding on the mortgage.

personally i save like crazy and try to clear the mortgage first....like many comments you have had so far....

ALWAYS keep an EMERGENCY fund that will keep you living in comfort should you lose your job, etc, i set mine at around 12 months..

PAY off the Mortgage, Before you start saving!

Answer 4

Both. First, you should pay off all non-mortgage debt. Second, set aside 3 to 6 months expenses as an emergency fund. (If in doubt, its NOT an emergency). After you have your emergency fund, put about 15% of your take-home pay in a retirement fund and use whatever is left to pay one your mortgage. Tong term savings should be in mutual funds.

Answer 5

The interest rate on your mortgage will almost always be higher on your mortgage that any savings account...so pay off your mortgage!

Answer 6

Get one of those offset mortgages so you only pay interest on the difference between your savings and borrowings. That way you get the best of both worlds. Also, much more tax efficient

Answer 7

if your credit card debt free, then you should be doing both.

make an extra mortgage payment each year (13 payments instead of 12)--that should save you 7-9 years.

in order to save, you'll need to reduce your taxable income--401k, traditional ira, small business, stock market, another house, etc.

its difficult for most people to save 6 months of income right off the bat in this day & age--we've deprive ourselves of the things that'll keep us sane. what you'll need to do is save at least 10 to 20% of your income in a savings account for emergencies.

good luck

Answer 8

Pay off your mortgage!!! They go by how much your owe to see how much interest you pay each day!!! Which can be pretty Costly when it all adds up

Answer 9

This calculator can help you figure out if it's better to invest extra money or pay off debt immediately. It takes into account the taxes paid and/or saved and can show you the monthly amortization tables...
http://debt.bizcalcs.com/Calculator.asp?Calc=Eliminate-Debt-Or-Invest

Answer 10

pay ur mortgage first!!!!