Payoff mortgage or invest?

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Rudy Roesel

• August 07, 2020 20:48

I currently have a mortgage with a 3.75% APR.  Recently, my PMI payment went away and left me overpaying my mortgage payment by $250 a month.  If I continue overpaying my mortgage payment, l will pay off my mortgage sooner.  However, I am thinking I could make better use of the $250 by investing it in gold/silver, cryptocurrencies, REITs, or other assets.   

My reasoning is I can easily get a better than 3.75% annual return.

I would appreciate any comments/suggestions on how to use this "extra" $250 a month. 

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  Kris John

  • August 15, 2020 15:48

  I would pay off your mortgage as soon as you can with surplus cash you generate. Doing so introduces other benefits to your life and free's you up from the crutches of debt. I did this @40 and today own 4 condo's which I rent and spend my cash on travelling and enjoying this beautiful country. Allow yourself the luxury of being debt free. 

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  Rudy Roesel

  • August 17, 2020 00:53

  Thanks for the advice.  I guess what I failed to mention is I'm 71 years old.  My mortgage still has 11 years left with the lower payment and 8 years with the increased payment.  In this short term given my life expectancy wouldn't it be better to invest the extra $250 in higher-risk assets?

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  Kris John

  • August 17, 2020 14:31

  Rudy , what higher risk asset ? are you referring to and what is the return you are looking at with this asset class ?

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  Rudy Roesel

  • August 17, 2020 15:59

  gold/silver, cryptocurrencies, REITs, or other assets.   I am looking for a higher return than paying off my 3,75% mortgage, say 10%+

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