Quote:
Originally Posted by Matata
For those of us due for a ####-kicking in 2026, should we be prioritizing paying down our mortgages or more traditional investments? I've gotten some mixed advice on this.
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Depends on whether your mortgage rate is higher than the rate of return on your investments and what you can afford to pay as a mortgage to keep your investments afloat. Ideally, if you are forced to pay down the mortgage, you'd just make a balloon payment at the time of renewal, as you'd maximize the return on your investments up to that point.
You'll also want to look at things like penalties. For example, you may be able to increase mortgage payments by X amount plus make a balloon payment of X amount, without a penalty, but if you leave it all to a massive balloon payment, you might be looking at a large penalty.