Chief Prognosticator

Where to Stick an Extra $100

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.