Pay down the mortgage or invest?
Freed up some money recently and wondering whether to aggressively pay down your mortgage or invest that extra cash?
Deciding what to do with "found" money is never easy. This Moneysense article from Gail Vaz-Oxlade provides options to consider when trying to decide what to do with a lump sum: pay down your mortgage or invest?
Mortgage rates are still at an all-time low, so if you have the opportunity to reduce the amount of your principal, why not do it now? If mortgage rates do increase in the coming years, the total interest you will end up paying on your mortgage will be reduced, along with the principal.
Although the rate of return on investments is unpredictable, Vaz-Oxlade does suggest diversifying. If it is possible to put some money towards your mortgage and still have some left over to invest, you may want to consider doing so. However, peace of mind is important as well. The parting advice from Vaz-Oxlade? Do what is right for you.