Author Topic: Investment vs. mortgage?  (Read 1415 times)

Bambooguy

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Investment vs. mortgage?
« on: April 24, 2015, 03:29:47 PM »
So I'm a relatively new MMM reader (about a year). I had a quick question.  I've been saving in my 401k an additional amount in my IRA. My wife and I have a small house payment and a low interest loan (3.5%) on the mortgage, so we've been putting every extra penny into investments. However, my wife and I were talking and it seems that although the mortgage interest is low, it seems like paying it off early might yield the best returns. The current Shiller 10yr. P/E suggests that stocks will earn approx. 3.6% annually (27+:1) based on previous earnings and bonds are even worse. I guess there's always inflation to think about, but the mortgage seems like a lot of return (for the market) without a lot of risk. Am I missing something?

arebelspy

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Re: Investment vs. mortgage?
« Reply #1 on: April 24, 2015, 03:36:03 PM »
MOD NOTE: Run a search.  There's about 10 million threads discussing this already.  Feel free to chime in on any of those.  Locking thread.  :)
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