Is it better to pay extra on the mortgage or invest?

Question

Accepted Answer

Paying extra principal is a guaranteed return equal to your mortgage rate; investing has a higher expected return but with risk. At a 6.5%+ rate, prepaying competes well with expected market returns, especially after tax. Below ~4%, investing usually wins mathematically. Run the payoff numbers here, then weigh them against your honest risk tolerance — the guaranteed option also buys peace of mind.

Mortgage Early-Payoff Calculator