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Author: pekinrobin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76395  
Subject: Re: Where to keep/what do do w/ $50K? Date: 7/28/2003 9:10 PM
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Yes, I did something similar. But I completely paid off my house -- housing is cheaper where I live!

I am not so sure of the value of pre-pay when it's only partial. In the event you have to default on your mortgage, you don't get back what you pre-paid. However, if the risk of default is very very slight, it is the way to go in my humble opinion. Getting rid of the mortgage debt is a sure thing.

Other "safe" investments have such a low interest rate that it doesn't make sense to be paying 6 percent interest on money that, if freed up, would only be earning 4 percent.

People made fun of me because they thought the stock market was returning 10 percent, yadda yadda. Now I look pretty smart because some of those same friends literally lost millions of dollars. It doesn't matter that the stock market "always" comes back in a few decades if you had Enron or UAL or any number of other so-called mainstream, sensible Fortune 100 investments.

Maybe I'm overly security oriented but I vote yes, put it toward the house note.
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