Should I Pay Off My Mortgage or Invest?

Compare the financial outcomes of extra mortgage payments vs. investing.

$

Investing Wins

By $165,612 over 20 years

Invest: Portfolio Value

$289,512

Mortgage: Equity + Saved

$123,900

The Bottom Line

Mathematically, investing usually wins when your mortgage rate is lower than your expected after-tax investment return. But there is real value in the peace of mind and reduced risk of a paid-off home. Many people do both.

Frequently Asked Questions

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