Thoughts about overpaying a home loan?

[bennkar]

I would agree that prepaying the mortgage can be great as long as you have other investments squared away first. And while I am pushing hard now to finish off my mortgage this year, I can say that the prepayments of a few hundred every month from 2006-2008 did a lot better than my other investments when the crash came at the end of 2008.

[FrugalGirl321]

With mortgage rates as low as they are ever likely to be I don't believe in prepaying a mortgage at all.

Well, there are circumstances when paying off the mortgage brings financial security when one is afraid to leverage their mortgage debt for investment purposes. While there is a likely higher return rate for investments vs. mortgage prepayment, it all comes down to one's comfort level.

We're prepaying our 10 year mortgage at 4.375% interest hopefully 7 years early. However, we save and invest nearly 40% of our disposable income in retirement accounts, savings, and mortgage prepayments and we're fine with that. We've chosen to forego higher investment returns for the mortgage prepayment, but that's us.