Maintaining mortgage debt, assuming you can afford that monthly payment.
Posted on April 10th, 2009 in Uncategorized
How do you feel about maintaining mortgage debt, assuming we can afford
that monthly payment.
Advisors seem to fall on both sides, those that say yes pay off your house
and those that say not to make that you’re first priority.
Thanks,
S
A:
It depends on the interest rate and your ability to save money without the forced savings aspect of a mortgage payment.
If you pay down or off your mortgage, you have to keep saving money; otherwise, most of us just increase other expenses once the mortgage payment is gone. Then if you save the amount that was previously going towards your mortgage payment into a Rainbow Portfolio™, you will make more money over time and get a diversified portfolio.
If your interest rate is above 6%, refinance the mortgage or think about paying it down and continue the saving the difference into the Rainbow Portfolio. If the rate is below 6%, keep your money invested in the Rainbow Portfolio.
Leave a reply