I’m often asked if it makes sense to pay off a mortgage early or invest the cash in the markets. As is often the case in personal finance, the answer is, wait for it…..it depends.
The disadvantages, if any, may stem from the financial trade-offs that a mortgage holder needs to make when paying off the mortgage. Paying it off typically requires a cash outlay equal to the amount of the principal. If the principal is sizeable, this payment could potentially jeopardize a middle-income family’s ability to save for retirement, invest for college, maintain an emergency fund, and take care …Read More