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Old 07-15-2010, 01:15 AM
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Default is it smart to pay off your mortgage

quickly? or just make min repayments.? Hii bought a unit a year ago and i only borrowed about 50% . since then i have been making extra repayments to minimise the interest that i have to pay and pay it off quicker. i only have 35% left to pay . but a friend of mine says its not smart to pay it off and i should be using the money for extra investments. should i just be paying the min repayments ? is it smart for me to be putting my extra money into the mortgage., it has made a significance difference in the interest im getting charged. it would be nice if i could just pay it off and no longer have a mortgage anymore. i am only 22 years old, i should probably go to an accountant but i am asking you guys for your help as you may be wiser and older and have mortgages of your own
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Old 07-15-2010, 04:15 AM
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Depends on what your interest rate is. If your investment will make more than the interest payments, then pay the minimum. Most likely, it's better to pay more each month since you are guaranteed to save money and interest rates were around 5% a year ago.
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