Mortgage Payoff vs Investment
Compare using a lump sum to pay off your mortgage vs keeping that money invested for long-term growth
Mortgage Details
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Investment Details
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How the Strategies Work:
Pay Off Mortgage: Use the lump sum to pay off the mortgage immediately, then invest your monthly mortgage payment each month.
Keep Invested: Keep the lump sum invested and continue making regular mortgage payments until the loan is paid off.
Change to Net Worth Over -1 Years
Pay Off Mortgage (-1 years)
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Keep Invested (-1 years)
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Difference (-1 years)
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Better Strategy
Keep Invested
-1-Year Projection
Year-by-Year Projection
| Year | Pay Off Mortgage | Keep Invested | Difference |
|---|
Key Insights
Pay Off Mortgage Strategy
- • Guaranteed return equal to mortgage rate
- • Reduces monthly housing costs
- • Eliminates debt and interest payments
- • Provides peace of mind
Keep Money Invested Strategy
- • Potential for higher returns than mortgage rate
- • Maintains liquidity and flexibility
- • Tax advantages of investment accounts
- • Risk of market volatility
These tools are for educational purposes only. For personalized financial advice, please consult with a qualified financial professional.