Wednesday, July 29, 2015

Finance wizards! Pay off debt (LOC) vs Mortgage?


Should anyone with consumer debt (e.g. LOC) try to pay off their mortgage quicker (shorter amortisation period)? The way I look at it is (a) from a cash flow standpoint a longer amortisation period = more money in my picket, and (B) from an interest standpoint, mortgage rates are less the LOC rates and they're compounded semi annually as opposed to daily.

In fact. What is the benefit to paying off mortgage singer at all even if you doing have debt? The opportunity cost of paying off your mortgage simply does not meet the market (what you could be earning through investment).

Any finance wizards out there who see flaw in my logic?

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