This article was originally published on U.S. News by Kristin McFarland, Director of Strategic Partnerships at Darrow Wealth Management. Directing excess cash towards paying down a mortgage means those funds aren't available for investing. These factors will help you decide if its better to invest excess cash or pay off your mortgage early.
Living debt-free sounds great, and depending on where you are in life it may actually be attainable. But even if you can pay off your mortgage early, should you?
Although it may be tempting, first consider the opportunity cost of paying off your mortgage early at the expense of other goals or investment options, as well as the impact to your tax situation.