What is the best way to pay off my mortgage early?

No one on this site should really respond to your question unless they are a licensed securities person. No one can be held accountable for their answers as they give you investment advice. My apologies!

Every person is different, but in general, if you are borrowing at 2.8%, but you can save at 4% or more, then it makes more sense to leave the money in the bank.. Lot's of people look at their home as somewhat of a savings account.. but when you analyze it against traditional investments,, it really costs you to pay extra against your mortgage and it's not a secure investment.. First, if you lost your job or worse yet, your ability to earn income, will you be able to make payments on your home.. If the answer is no, then regardless of how much equity you have, you can still lose your home to foreclosure... You could have paid extra for 10 years, and have 50% equity, yet if you are unable to sustain the payments, the lender will foreclose.. Also, if you have this situation and you needed to tap into that equity, then without the ability to show income, you wont get approved... So you pay extra against an asset that can be taken from you in just a few months, and you cannot get the cash out if you don't qualify for a loan.. This is why most all financial advisers will tell you that CASH IS KING!! Never let your equity be at risk.. and the more funds you can put into savings, the better. Although I'm not licensed to advise you as to what type of securities investments you should purchase, it is my job to advise you as to why having a mortgage is better than paying cash.. or why you should not pay extra against your home. This all being said, if you are not disciplined in savings, then paying against your home might be a way to force yourself into saving.. again, not the recommended way, but it is a way.. The best advise I can give you would be to get with a financial planner and let them look at your complete profile.. once they see the big picture, they can help you manage your risk and investments.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

I'm a licensed LO in Illinois for more than 18 years. I've invested in real estate, Stocks, Bonds, IRA's, Money markets, Mutual funds for the past 15 years and continuously asking my self where's the best place to have excess funds for investing purposes (retirement) . My personal thoughts are as follows. If you have cash on the sideline (Survivalist 6 mo ~ 1 year) perhaps the IRA route maybe best. but keep your disposable income.. Just so you have time to recover in the case of loss Job, the spouse's Job.. The IRA's in my thoughts depends on several factors how much interest can you make on your investment ROI? per annum. If your going to have to pay out of pocket to the GOV- you should consider the IRA before 4/17- as it would be going to the GOV anyways. My thinking is give it back to your self for retirement. For your interest deduction of 2.8% needless to say its a write-off if you need it to be written off? If your a self employed individual well you may need the write off? If your a W2ed employee then its a deduction. My conclusion is I personally like the fact my mortgage is paid off! I just have to pay property taxes and regular old bills!! I personally feel more secure and not having to worry about the bank taking away my home. In your situation it depends on how long your having to repay your mortgage note for 30yrs. or 15 yrs ? Feel free to reach back. As im not a securities individual. Yet im a realist and have seen what the market did to 401k's IRA's Stocks Bonds.. in the crash of the market. Best to you N Corso NMLS 234890

Those answering the questions here are mortgage loan officers, and the variables are really too complex to answer without knowing more about you. But generally, why pay off a 2.8% loan if you can make a much higher rate of return on something else. On the other hand, it sure does feel great to not owe a penny on your home anymore...