Originally posted by jorge:
I thought of this also, but figure it's better to put this extra money into a 401k.
The reason is this, my mortgage is at 5%, while my 401k averages 12-20% a year.
Meaning, that I will make more money on the 401k over time than save on interest on the mortgage, by far too.
Not true really - because your monthly mortgage payment is like 95% interest and only 5% principle. With most mortgages anyway. So the sooner you pay down more principle - the more you save on interest.
Previous Topic
Index
