If you have a mortgage, you have probably considered the path of paying additional payments, bi-weekly payments, or some sort of accelerated plan to pay it early. The question is: does it make sense? Financial gurus of all walks say that if you have a very low interest rate, do not pay your mortgage early. The conventional wisdom is that if you can invest your money at 10% in the stock market via mutual funds over the long haul, it doesn’t make sense to eliminate a 6% or 7% interest rate on debt. The concept is that your money can earn more invested. However, many of us just want to be out of debt. We want to own a home free and clear as soon as possible. The numbers crunching CPA stuff makes sense to me, but I’d just prefer to own the home or have the most equity.
I have a few links here so you can make up your own minds:
Wisebread – 30 year mortgage breakdown
Early Mortgage Pay-off Calculator
Don’t Rush To Pay Off That Mortgage – MSN Article