Chief Prognosticator » PrePay for Mortgage?
PrePay for Mortgage?
Does it ever make sense to make extra payments on your mortgage? Well according to a Consumer Reports article I read today, it doesn’t. They compared paying $100 extra every month versus investing $100 a month in the S&P500 INDEX. What happened? Well if you looked at 15 year rolling periods, the stocks outperformed the prepayment return on your money 100% of the time! That’s food for thought.
2 Comments
1. pob (1 comments.) replies at 2nd March 2008, 11:55 pm :
$100 a month
super…
2. Jason Pearson (3 comments.) replies at 31st March 2008, 3:46 pm :
That is interesting, but I am interested in being unburdened by my debt, so I prefer to pay off my mortgage early.
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