This is my first post on the MMM site and I am definitely not a financial genius - so all advice is welcome.
My husband and I have been married for a year and have one debt, the mortgage (no credit card/car payments, etc.). Our mortgage is around $370,000 with a 5% interest, 30-year fixed loan (we're one year into repayment as well). We are 37 and 41 years in age and would like to quit our current jobs and relocate to the pacific nw within the next 10 years. We anticipate having second careers, however our goal is to work for fun and not out of necessity. Currently our mortgage payments are $30,000 / year (principal/interest/escrow).
I have suggested to my husband that I would like to apply an extra $30,000/year towards the principal so we can get the mortgage paid off. At which point we could purchase the land for the retirement house (we would have a land loan for improved property - which is a completely different ketle of fish - I know there are many financing options with different tax implications).
My husband has suggested that instead of paying down the mortgage so quickly that we invest either the full $30,000/year or a portion of that in stocks, bonds, etc. He would expect a ROI inbetween 7.5 and 15%. We would still pay off the mortgage early, just not as early.
Is it smarter to pay off the original mortgage more quickly or to invest the extra money and delay purchasing the new property?
I appreciate all of your feedback...