Should I pay off my mortgage early?

Pay off mortgage early

This is one of the most common questions I get from people whose finances are generally secure (no non-mortgage debt, full emergency fund, and on pace for retirement). “What should I do with my extra savings: pay off my mortgage faster or invest more?”‎

Well, they’re both good options! Let’s break them down.‎

Option 1: Pay off the mortgage as fast as possible. This is great because you’ll get 100% debt free (including your home) as soon as possible. When that happens, it will dramatically decrease your living expenses and dramatically increase your free cash flow. It’s also just frankly nice to have a paid for home. It reduces risk associated with losing your income, downturns in the market, etc.‎

Option 2: Pay off your mortgage as slowly as possible. Since rates these days are crazy low, this strategy allows you to use that excess income to invest more aggressively. If you work it out on an excel sheet, this strategy will create more wealth because you’re essentially leveraging your primary home to invest more heavily. It’s also a