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Pay off my mortgage or not?

Started by david123, December 10, 2019, 12:32:43 PM

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So I have 2 mortgages - my primary residence and a vacation home.  The combined total is $300K.  I have about $850K in various after-tax investment accounts.

I can't itemize, so there is no tax advantage.  The interest rates are low - 3.25 and 3.5 percent.  It probably doesn't make financial sense since the market is returning more than that, but for the piece of mind, I'm tempted to pay them both off.  My mortage payments are $2,500 and $1,600 each month.  If I paid them off, I would just invest that amount each month in mutual funds.  I'm currently 49 and want to retire at 55 (or at least be able to retire if I choose).  I have no other debt.

Any thoughts?


I've never regretted paying off a mortgage, even if I could have made much more in the stock market. The peace of mind is worth way more than potential lost returns.

I like to do both though, pay down debt and invest. I recommend following this framework: