One of the interests I have moving forward in life is money and how to manage it. I have found it to be a very personal thing. Some people think one way, others another. For me, it has and I expect it to be a continual learning process for the rest of my life.
I have thoughts about mortgages, others have other thoughts. here is an opinion I agree with;
By Jerome Hass – Lightwater Partners
The best thing you could do with an unexpected windfall on cash is not to pay down your mortgage but to invest the money.
If you have a 20 per cent down payment on your mortgage, you effectively have a 5 to 1 leverage on your capital.
In other words, it allows you to benefit five times as much if your asset increases in value, compared to if you invested only the base amount.
If your home is your principal residence, the capital gains are free also.
Money within your mortgage is the most powerful form of capital.
By pre-paying a mortgage, you diminish its role and reduce your long term portfolio performance.