What is better so far. To pay the interest off a mortgage or to in the .
I realize interest on mortgage is tax write off, but it is still out of my pocket.
Please source your reasons.

I have a bit over 5.5% interest rate currently on my mortgage.

What do you recommend. Please list your sources or explain your reasons please.

 

  • Bali 8:02 am on November 10, 2010

    You can invest in stocks or mutual funds and may be able to make more money. When u make more money, you are going to invest that money along with some additional money. The cycle may go on for months or years and you may get over confident. At that time you may be heavily invested and may lose all or most of your investment. In stock market you are competing with thugs and liars who have better resources to judge where the market is heading. Eventually people do lose money. Compare this scenario with paying off your mortgage. You will be saving 5.5% every year. The stock market average over long term is less than 10%. I don’t think it is wise to invest in stock market.

  • Phoenix Down 8:02 am on November 10, 2010

    Pay off ALL debt as fast as you can while saving a little bit every week (3 months emergency fund) with the money you have left over without a house payment you can invest even MORE into stocks etc.

  • Jed 8:02 am on November 10, 2010

    Forget about the last 5 years. That’s history, includes a major recession, and is most likely a poor indicator of the future.

    Do not pay down your 5.5% mortgage. Invest in commodities stocks. They have a much higher rate of return recently and in the near future. Take a look at any commodities stock performance recently. You will be amazed.

    Two years ago, I mortgaged myself to the hilt and invested in commodities related stocks. It was the best decision of my life.