Should You Prepay A Mortgage?
Most of us would love to pay off our mortgages especially as we get close to retirement. This study indicates that some of us are better off putting money into our 401k plans.
After doing a lot of complicated math, the researchers essentially endorsed the longstanding rule of thumb about mortgage prepayments: If the return on the 401(k) investment is higher than the interest rate on the mortgage, go with the investment. If not, prepay the mortgage.