Duelling Fools -- Should You Pay Off Your Mortgage Early?
A hot debate in Fooldom rages over the best way to manage your mortgage debt. Do you take advantage of cheap mortgage debt to boost your investment returns, or treat it like other debt and get rid of it as soon as possible?
This week's Duel sees Christopher Spink (TMFEagle) arguing the interest-only mortgage case, with Nigel Roberts (TMFNigel) in favour of paying down mortgage debt as soon as possible. Read both the arguments below, and then cast your vote and give us your feedback on the Duelling Fools discussion board.
The "Yes" Case
"Investing in the stock market exposes your investment to risk. You can have no idea what future rate of return you will achieve, but paying off your mortgage involves absolutely no risk whatsoever in this respect. If you pay off your mortgage you are effectively guaranteed to achieve the same rate of return as your mortgage interest rate." more...
The "No" Case
"As a writer for the US Fool said recently "The big trick to achieving a million-dollar portfolio is not spending it when it reaches $100,000." If you decide to spend your money on paying off your mortgage early and buying your house you probably won't get to that million-dollar mark and the grater happiness and fulfillment that will bring." more...
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