Suppose you had surplus cash and a mortgage...

altyfc · Joined: 29 Dec 2004 Posts: 1232 Location: Aardvarkland

...would you use that cash to pay off your mortgage, or would you invest it and hope to get a better return?

There's an article on the subject here:
http://www.fool.co.uk/news/your-money/manage-your-finances/2008/03/25/invest-or-pay-off-your-mortgage-early.aspx?source=ioowftxt0010011
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Wolverine · Joined: 06 Apr 2008 Posts: 36

I am generally attracted to the strength of being debt free and cash rich so that when "special" opportunities come along there is nothing stopping me from going full steam.
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altyfc · Joined: 29 Dec 2004 Posts: 1232 Location: Aardvarkland

That would be my personal approach also. I would want to clear the mortgage before I began investing.
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Wolverine · Joined: 06 Apr 2008 Posts: 36

There are other factors too, like having an even better credit rating or strength to launch projects or investments. I like having the option to rent out my house if I want and go live somewhere else. I also put a value on no one having claim on my home. There is value in security.
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