Hypothetical Question: Would You Payoff Mortgage?

[Eagle]

Thanks everyone for the feedback. We decided to continue with our original plan after talking to our CPA. We will not be cashing out the mutual fund. We will continue the slow and steady pace. Crockpot mentality instead of microwave mentality.

[Weird Tolkienish Figure]

I'm contemplating a hypothetical question regarding a mortgage payoff.

Let's say I have 75k in a mutual fund. And I also have a mortgage with say 100k at 4.625% interest.

Would you cash in the mutual fund to pay off the mortgage? Why or why not?

If the house was as up to date as I liked, I absolutely would pay off the mortgage early. Nothing would beat the idea of being completely debt free early. That low level of stress is rare in this day and age. Plus that is a guaranteed return (not having to pay the interest rate on your remaining debt) as opposed to what you might get in another investment vehicle.

[JohnM.Hendricks]

The banks make income when you hold a mortgage loan and they also make income when you make investments in their mutual funds. There is no right or wrong option here. Both making an investment and paying off a mortgage are monetarily liable. I usually tend to go overboard on the traditional side, so if I were in your shoes, I would pay off the mortgage loan, then invest in mutual funds.