To TYD450, Absolutely! That is a major reason why I have always preferred NOT to pay extra into the mortgage, but put extra money into paper investments. In our immediate area (suburb of Boston), home prices range from 300k to 850k. (Ours is currently worth 460k). A reasonable 5% increase in home prices increases my equity by 23k --- I am going to get that if or when I sell whether or not I pay down the mortgage. So my real estate portion of my investment portfolio keeps in step with my paper investments (though I really don't consider my residence an investment in the same way as I do my mutual fund portion). And in time, the passive income resulting from my my increased savings and investments has paid, and will continue to pay out, enough for the mortgage and then some long after I'm gone. Also, partly because of the buildup of an emergency fund that resulted from not paying extra into the mortgage (for my residence and rental properties), all repairs/maintenance on the residence, rentals as well as autos have always allowed me to pay bills in cash. Having extra cash also allowed me to purchase additional rental properties when market conditions favored buying. Other than for a residence or rental property mortgage, I have never had to take out a loan. Ever! To work our finances in this way was a decision made by my wife and me 30+ years ago and we have never looked back.