Re: Pay Down the Mortgage or Save for Retirement? Which is better in my situation?
Financially it doesn't make sense to pay extra on the mortgage. You're right, the tax tail shouldn't wag the investment dog, but look at the numbers. Extra money put in your 401k should earn about 9% a year. Extra money toward your mortgage will earn you about 5% a year (adjusted for tax deduction).
The psychological boost is a different story. If you'll be a happier person with no mortgage payment, isn't that what really matters?
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