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Author: stork1344 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: Re: An alternative to fixed income investing Date: 8/12/2000 5:17 PM
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Another consideration is the return you're getting on your investment. If your home is appreciating in value, it makes sense to invest more in it by making extra principal payments. If it's not appreciating, it doesn't make sense, unless you have a mortgage interest rate which exceeds what you could otherwise earn on an investment of similar risk and duration. In reality, most people don't stay in their home for more than 8 years, however, so the alternate use of your money should be based on the return you could get on an investment with a maturity equivalent to the expected remaining period you intend to stay in the home.
Bob
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