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Pay off Mortgage vs. Invest – Which Is Better

If you have some extra money then it is perfectly normal to think of better ways you can utilize it. You can definitely purchase things using your extra cash but if you’ll think of it that would be a waste of money.

The best way to spend your extra cash is to either pay off your mortgage loans or you can invest the money. Luckily this article will discuss both the advantages and drawbacks of the two options. It would be best to read further if you want to make the best decision.

Invest or Pay off Mortgage Loans?

The two options have good and bad implications. If you have a clear grasp of both the positive and its negative aspects then you will be able to choose a decision that is suited to your situation.

Mortgage Payments


Matters related to mortgage are extremely complex in nature. This also involves a bit of calculation. For those who are able to deal with their mortgage problems efficiently would surely feel relieved.

This is the main reason why many people want to pay for their mortgage ahead of time. If you find these mortgage payments a hassle then paying them once for all would be a good idea if you have some extra cash.

Here are some of its advantages: calm state of mind, smaller monthly mortgage payments and reduced payment for the interest rates.

Negative Implications

If you choose this option then obviously you will not be able to make your initial money grown into a bigger amount. If you will use it to pay your mortgage then that’s it. The money that you have will not increase.

It is indeed a sure way to pay off your mortgage but you are actually losing the chance of increasing its amount. Investing only means one thing you are able to increase the amount you already have. But of course paying off your mortgage means you are able to get rid or minimize your debt.

Opting to Invest

Positive Implications

The fact that mortgage affordability is high became the primary reason why many people choose invest their extra money rather than paying their mortgage loans, this is prevalent among seniors. If there is a low tax rate and mortgage rates then this only means one thing, it is a good thing to invest.

It is already a given fact that if the investments you make are good then you can be assured to get bigger returns. You will not just be able to pay your mortgage loans but also purchase those things that you want. You can really see how great the effect and results are once the investments is in the right track.