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Author: SactoFool One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76390  
Subject: Re: Help!! need advice.. Have $150,000 Date: 4/19/2000 10:14 AM
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Should I pay down my Home Loan (currently 150,000 on a 280,000 house @ 7 1/4%)and use the $1100 per month to invest or should I invest the 100,000 for 10 years and continue to pay the bill each month? I have 200,000 already in the market in tech and blue chips.

This is going to be a very personal decision and there are people who will argue both sides.

Paying off the mortgage gets you a "guaranteed" return of about 7.25% (actually less because of the loss of the tax deduction), but the market "averages" 11%. How comfortable are you with that risk?

Also, how far away from retirement are you vs. how much time is left to pay on the mortgage? Personally, I'd rather have my mortgage (and any other debts) paid in full before I retire so I don't have to come up with the extra money in retirement to continue paying on it.

Weigh the risks and benefits each way and you'll come to your own decision.

Sacto Fool
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