A tough decision many homeowners face is to either pay off the mortgage early, or invest. They might decide to invest more towards stocks, bonds, mutual funds, or towards your retirement savings.
The tradeoff comes down to reaching debt freedom sooner, or having a larger investment portfolio when you retire.
The million dollar question becomes:
Should I pay down the mortgage faster or invest more in the market?
Advantages of Paying Your Mortgage Early
Absolute Debt Freedom
The largest advantage of paying down your mortgage early is you own your house sooner. Paying off your mortgage (or any loan) early means you save tens of thousands of dollars in interest. To see what this looks like for you, you can enter in your own mortgage stats into this mortgage calculator and see how much you can save by contributing an extra amount each month. Even as little as $100 extra every month, is still quite a bit of savings over the life of your loan.