Mortgage Payoff vs. Investment Return

The decision to pay down a mortgage versus investing depends on individual financial goals and risk tolerance. If investment returns (e.g., 8%) are higher than mortgage interest rates (e.g., 5%), investing can be mathematically more beneficial. However, paying off a mortgage offers a guaranteed return and peace of mind, while investing carries risk. The choice hinges on whether one prioritizes financial freedom and security (pay off mortgage) or aggressive wealth accumulation and a larger lifestyle (invest).