Should I pay off my mortgage or use my liquid cash to invest?

I am wondering if I should use my liquid cash to pay off my mortgage, or would I be in a better position if I invested? I am currently $200,000 in debt at 4.05% and am in my 28th year of a 30 year mortgage.

Debt, Investing, Real Estate
Answers
Sort By:
Most Helpful
November 2017

You should pay off your mortgage and never think about it again. 

Would you ever consider taking a second mortgage on your house to purchase stocks, bonds, and investments? Most people would say "no way." With this in mind, why would you carry a mortgage while owning stocks, bonds, and investments. It's the same phenominon. 

If you continue to pay the loan off diligently for another 10 years and then decide to pay off the entire balance the real interest rate you would have been charged on the loan balance would equate more towards 6% per year because of the amortization schedule of a mortgage. 

Pay it off. You will never regret it.

November 2017
November 2017
November 2017
November 2017