Reply to Saving for college vs paying off house

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Can you split 1/2? I can see logic in both approaches. We paid off mortgage first and it worked out fine for us. Knowing your home is completely paid for gives you tremendous peace of mind. [/quote]

OP here. But is this financially the best strategy? I'd rather have a rental property before paying off the mortgage.[/quote]

Historically and mathematically speaking, no. Paying off mortgage gives you two upsides - 1) you are always moving forward (market - stock or real estate investments) can go down; and 2) peace of mind (important to some, not so for others). [/quote]

OP here. So you would put our 150k nest egg into the mortgage? (We owe 300k on the mortgage). I know it will shorten our mortgage in the future, but I'm having trouble doing it because I'm still paying the same interest right now. [/quote]

OP, I can't tell you where to put 150k but i'd strongly advise you against taking on another property (i.e., rental) and financially stretching yourself. You can get in trouble real fast once you start to bleed financially. Speaking from personal experience... The only reason we didn't lose our primary home is the fact it was paid off. Just my two cents. Good luck.

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