Hi Friends ⋆˚࿔
My home mortgage interest rate in 6.125% in 30 years. I've maxed my 401k and Roth IRA.I am thinking some options below
1. Paying off the mortgage earlier by paying more principal every month. It will shorten the mortgage year.
2. Paying the mortgage at the minimum each month. Use the money to do other financial products, but they seems lower than 6.125%, which means that I will pay more interest.
Other financial products considering:
\- CD: 4.25% (14 months)
\- Bonds: 4.75% (20 years)
\- Stocks: have risk
Thank you very much for your time! I am open to any ideas. Please feel free to share if you would like ⋆˚࿔
Thank you all very much for all the ideas and experiences! Below I've summarized, please feel free to correct me :))
**Updates**
05/17/2025
1. Paying off earlier. As the 6.125% is on the total mortgage money (e.g. 500k). It saves 6.125% on 500k. Most likely more than the increases from SP500 (7-10%). 7-10% gains is on the capital (e.g. 10k). Gains is much less than interests.
2. Stocks. Stock gains using after-tax money and capital gains needs to taxed. Need to bear the risks if stocks is less than 7%.
3. Tax deduction. Tax deduction standard is high. Mortgage and property tax is not helping much than interest.
4. Flexible money schedule. If I would like to have more flexible on money, I can put extra money on savings, and decide if I want to pay all money (capital+saving interest) to mortgage. Interest rate may probably less than interest rate (4.5% v.s. 6%)
5. Mutual fund. It has \~10% annually return. Gains need to be taxed.