In a few months I will have enough money and some extra to pay off my mortgage. I still owe $175,000 and it's still fairly new, so I have a little less than 30 years to go. I hate having a mortgage payment, but I could use the money for other investing also. I don't know what to do. I am 47 years old. Any suggestions?

If you are serious about keeping this house for a long long time, I would suggest putting the money toward your mortgage, since you will just end up owing and paying less in the long run.

Also, if you do choose to invest it, I would invest in things that are rather secure and that let you take your funds back when you need them, in case you do need money for your mortgage.

An argument could be made either way. At 47, you're talking being about 77 when the mortgage would finally be paid off ; no doubt retired and living on a fixed income for some years by then. In that regard, it'd be good to rid yourself of the mortgage payment. Then, if upon retiring you wanted to sell your home and relocate, you'd make far more profit from the sale then if you had a mortgage that needed to be satisfied. On the negative side, as you've said yourself you could use that money for other investments that could add to your retirement income. You'd also lose the tax break on your mortgage interest if you were to pay it off.

One thing I would check is if there is any early payoff penalty, I had to sell my main home this year, and even though we sold it, I was stuck with a hefty early pay off penalty.

But I always believe if you are going to keep it long term, to pay if off

There will be arguments both ways on this. Technically you could invest the entire amount and earn more than the interest you pay on your mortgage. But, there is no guarantee and I hate debt as well, that's why I would pay it off and be debt free :)

I think the prime consideration is how long do you plan to live in this house. If you're there for the long term, I personally think paying off the mortgage is a good thing to do. But if you think you might sell in the next 5-10 years, I would keep paying the mortgage, and put the extra money you have into investments, perhaps ultimately to help with the down payment on your next house.

Another factor to consider is the interest rate you're paying - if you have nice low rate you may want to keep the mortgage because you could do better investing wisely rather than paying it off. But if you have an adjustable rate mortgage, the rate is probably pretty high right now, so I'd advise paying it down.

As ebaines said the interest you are paying is a significant factor. If this is a fairly new mortgage you may be paying 6-7%. Now you also have to factor in the tax deductibility of the interest. So that 6-7% may actually be costing you less than 5%. Now if you can invest your money and make more than 5% then it doesn't make sense to pay off the mortgage. Instead, invest the money and when you retire you can then pay off the mortgage.

Hello CT:

There are a lot more factors, besides your age, that go into a long term financial decision like the one you're contemplating. Without more information, anything suggested here would be off the cuff and basically worthless.

Oh, the information given here is good, no question - IF it fits your circumstances. However, it's so much easier to give good financial advice when you're not guessing about the circumstances. You're leaving us to guess.

excon

Everyone's answer's were somewhat helpful. I do believe ScottGem's answer made the most sense to me at the moment, and Excon has a good point too. I have a lot more things to investigate before I do anything, but I wanted to kind of see what the majority of the answers would be. Thanks guys!