Mortgage & Refinance

In Part 1, we introduced the question of whether it is better to payoff your mortgage or simply invest the money. We also walked through an example that demonstrates how your mortgage is really the same thing as an investment where you earn the same rate of return as your mortgage interest rate. Back to the Question: So after the previous example, you’d probably think that that was the answer and we’re all done. Unfortunately, it’s not that simple. There are two main variables that change the circumstances: … [Read more...] about Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 2

It’s one of the most widely asked, light-hearted questions among people: • “If you won the lottery, what would you do with the money?” There’s the usual responses like buying a fancy new car, going on a shopping-spree, taking an exotic vacation, that thing you always wanted, etc. But after all you filter out all the fun responses, most people come to two very sensible responses: • “I’d use the money to payoff my house” • “I’d invest the money” Although not all of us will be winning the lottery anytime soon, we make much smaller-scale decisions along these lines all the time. For example: • Every paycheck when your money goes into a 401(k), have you ever considered if putting it towards your house was the better option? • Have you … [Read more...] about Which is Better – Paying Off Your Mortgage or Investing the Money? – Part 1