Should we pay off our $450,000 mortgage on our $1.2 million house with a 3.5% interest rate, or should we invest in stocks given that our payments will soon increase?

In the article, a couple in their late 60s with good health and two homes, one worth $900,000 fully paid for and the other with a mortgage of $450,000 on a home worth $1.2 million, seek advice on whether to sell their second home to pay off the mortgage. They have $2 million in savings and are considering whether to invest in the stock market or pay off their mortgage before the interest rate increases in 2025. The advice given includes waiting to see how mortgage rates change in 2025, considering the potential gains from investing in the stock market, and weighing the benefits of being debt-free with the potential growth of invested funds.

– Couple in their late 60s with good health and $2 million in savings
– Own two homes, one worth $900,000 fully paid for and the other with a mortgage of $450,000 on a home worth $1.2 million
– Considering whether to sell second home to pay off mortgage before interest rate increase in 2025
– Advised to wait and see how mortgage rates change in 2025
– Advantages of investing in stock market versus paying off mortgage discussed
– Considerations include potential gains from investments, being debt-free, and risk tolerance



Source link