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By all means, pay off the mortgage!

Submitted by Guest on December 5, 2007 - 17:18.

I disagree with the book's advice to not prepay one's mortgage. Yes, if one has a mortgage with a fairly low interest rate, one may be able to find investments with a higher rate of return. However, for many people that's far from certain.

I've found great peace of mind from outright owning my home. That, in combination with having no other debts whatsoever, means that our "burn rate" is relatively low if the household income disappears. Investing the money we were previously spending on the mortgage is giving us additional padding.

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