DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing Should I pay down my Mortgage with Margin?
Oct 3, 2025
Should you pay down your mortgage or invest? Allie and Quint delve into the math behind mortgage payoff versus stock market returns. They highlight that, while investing often yields higher long-term gains, psychological comfort from being mortgage-free can't be overlooked. The discussion includes how personal preferences and liquidity needs influence financial decisions. Ultimately, it's about aligning your financial choices with individual priorities and risk tolerance for a balanced approach.
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Run The Numbers Conservatively
- Run a side-by-side math comparison of paying extra mortgage vs investing using conservative return assumptions.
- Use ~3% home appreciation and ~8% investment growth to see which yields more long-term wealth.
Time And Compounding Favor Investing
- Longer time horizons increasingly favor investing over mortgage paydown due to compounding.
- Housing appreciation often lags broad market returns, so don't overestimate home gains.
Prioritize Peace Of Mind When Needed
- Choose mortgage payoff if being debt-free is a top personal priority for peace of mind.
- Prioritize emotional goals even when math favors investing if it improves your financial behavior and wellbeing.