Image by mortgagepaymentplan via FlickrI might be missing something because there are no good investments worthy of my hard earned money. The stock market, the bond market, even gold, all carry high risks. I prefer to play it safe.
Benefits of paying off mortgage.
With your house paid off, you can sleep and rest easily. There is less stress in your life. You can't put a price on the happiness and financial security of your family. So there is an emotional benefit when your house is paid for in full.
A mortgage of $400,000 at 5% interest gives you monthly mortgage payments of $2,147.29. No mortgage, and you have this money to spend on other things. If you put this money in a bank account each month, in 10 years you would have accumulated about $300,000 allowing for a small bit of interest on the account. My advice would be to put this money into a workplace retirement plan such as a 401K. Some companies will match your contribution up to 6% of your annual income.
Now that you have that extra $2,147.29 every month, you should upgrade your life and disability insurance policies.
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