Mortgage Payoff vs. Investing

If mortgage rates are below 5%, it's generally more advantageous to invest the money elsewhere, as potential investment returns or high-interest savings account yields can exceed the mortgage cost. A higher risk tolerance and larger financial goals also favor investing over aggressive mortgage payoff.

Paying down a mortgage with a 6% interest rate is equivalent to earning a 6% return on investment.

To financially benefit from investing over paying down a mortgage, the investment's rate of return (after taxes) must exceed the mortgage's interest rate.

A mortgage interest rate of 2.7% makes investing extra funds a more attractive option compared to paying down the mortgage.