It really depends if you want to leverage your money, or payoff your mortgage. Keep in mind that you will also be taxed for any capital gains, such as earned income on investments.
It also looks like you're not paying off any principal, just interest-only payments. I would pay-off principal as well, especially in the current downward market trend.
Also consider if you want to stay in the home, or sell it within a few years. There's a good chance your home could be worth less than it is now in a few years time, so be cautious.
Good investments include buying stock in huge firms like Citigroup, Chase, or B of A. All solid picks with dividends to boot.
Maybe consider a mix of investment and paying off the mortgage. Don't rely on any perfect formula for success.
A savings account with 4.06% APR will yield $235.48 if you put the full amount of $5,800 in initially...is that worth it to you?
Learn more at http://www.thetruthaboutmortgage.com
· 1 decade ago