Should I Put Money in Accelerating My Mortgage Payment or in Stock Investment?

On the surface, the smart strategy is to pay off your mortgage debt first, get it out of the way, and live debt-free for the rest of your life.

However, you could be leaving money on the table when you start factoring in your options. For example, mortgage interest rates are the lowest they have ever been, and mortgage interest is tax-deductible.

What Is Your Situation

It could also depend on your personal savings situation. If your mortgage debt payments are low, you possess a sufficient amount of liquid assets (savings, emergency fund, and a mutual fund), and reliable history of living within your means, it might be wise to maintain the mortgage and choose to invest your money.

Consider the Market

Another consideration you need to make is what you would be investing in. Remember, the market is at an all-time high right now, so it would be challenging to replicate the massive gains that investors enjoy over the last 15 months.

Will central banks taper policy, hike interest rates, and remove their feet from the pedals? Could fiscal policy turn investors bearish? Many elements could force a steep correction or downturn.

Look to the ETFs

Should you choose to invest in the stock market, be sure to utilize index funds and exchange-traded funds (ETFs) that pay a dividend that is worth your time and is reliable.

Final Thought: Find A Middle Ground

Can you strike a fine balance? Perhaps.

There could be some middle ground: Split this extra money in between paying off a chunk of your mortgage and investing in the stock market.

Remember, because this is crucial money we're talking about here, you need to explore every avenue.