Tools

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

$
%
$

Investment Details

%

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)

$

Keep Invested (-1 years)

$

Difference (-1 years)

$

Better Strategy

Keep Invested

-1-Year Projection

$0$0$0$0$0Pay Off MortgageKeep Invested

Year-by-Year Projection

YearPay Off MortgageKeep InvestedDifference

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.