You're absolutely correct. Also, keep in mind that the interest you pay is being reduced over time, so it's less and less through the years. If you throw inflation into the mix, with a fixed mortgage, you are effectively paying 3-4% less every year.Your extra cash is much better off being invested?first a cash reserve (3-6 months expenses in case you are temporarily disabled or lose your job), and then hit your accounts with tax benefits like Roth IRA and your company's retirement plan. Of course, none of the investments do anything for a sound financial plan if you aren't properly insured. Source(s): College of Financial Planning 4 years ago I want to thank everyone for their effortenoriver almost tie for best answer, it was a hard decision
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