Should one pay off his mortgage or invest that money?

pay off the mortgage, just think of all the money you will save in interest that you can then invest.

Pay off debt first.

Pay off the mortgage first. You can invest your future earnings later.

invest, house will continue to go up in value,so thats making you money..

You'll get yes to both on this question. I would pay off my mortgage because I'm a 'safe' kind of investor. Having no mortgage payments for my home is of utmost importance to me.

This doesn't apply to everyone. Many will say that you have good tax advantages for carrying a mortgage (very true) and the money can be invested to make even more (again very true).

It all comes down to personal choice and what you feel best about doing.

Run, do not walk, to the nearest bookstore and buy Doug Andrew's book "Missed Fortune" (the cover is a little cheesy) This book is easy to read and will lay out all of your options. Doug has been counseling families on this very question for 30 years and all of his experience is in this terrific book.

Pay off half of the mortgage to reduce the monthly payments and invest the other half in
Federal Treasury Bonds or State Tax Bonds.
State bonds are tax free except for the Feds and treasury Bonds are tax free except for the State. You can yield 5-7%, again part tax free!

Paying off a mortgage IS investing the money, but into your own house instead of someone else's corporation

The real question is where can you get the better return for your money? If you can invest the money and earn 8%, and your mortgage has an interest rate of 6%, then you should invest the money.

I think it would depend on what your priorities are. If it's extra money that won't be readily needed, then I would pay down the mortgage. Most mortgage interest rates are higher than a savings acct.
If you are a risk taker then you can invest the money in a higher rate of return, but remember that the principal will not be guaranteed and you could lose it all.

Compare the interest you would save by paying down the mortgage with the investment income AFTER THE EFFECTS OF TAX.
Tax relief (if any) on the mortgage payments may be different to the tax payable on the investment income.

Always look at these things after tax. That's what affects your pocket.

Note by paying down your mortgage, you will become debt-free much sooner, as well as saving interest. Then all that money you had been paying on the mortgage becomes money in your pocket. Big bucks!

Some folk take out a mortgage for the purpose of investing the proceeds. Usually the difference between the two (after tax!) makes a relatively small change in total income and you have all the headaches of being a landlord. These sorts of arrangements usually make money only when the property is sold (at a profit) and the scheme is wound up.

On balance, I would say pay down your mortgage (and any other debt) as soon and as fast as you can. Then when you become debt-free, put that freed up money into investments.

Don't ignore tax-sheltered invesments, either. But that's a whole other story.

Both options are an investment. Paying off your mortgage is an investment in real estate which will provide you more reliable returns in the future plus save you a little interest since you'd be finishing off payments and own a home free and in the clear.

I'd go with paying off the mortgage.

If the tax ramifications justify keeping the mortgage payments then keep the mortgage.
If you are not getting a tax advantage then pay the mortgage off.
Everything depends on the amount of money owed and the Principal and interest you are paying.

This is one of the most difficult questions. There are a lot of advantages to investing (espescaily when the stock market is performing like it is right now), but I know that I feel really good when I know I don't have a house payment. Neither is a bad plan, just don't decide to buy big screen TVs or something with the extra money.

Neither is a terrible thing to do.

Just be sure that IF you do invest the money, you have a diversified investment portfolio and are trying to earn more than what your interest rate is.

I personally like taking the tax deduction and investing that cheap money (5.5%) in some good stock mutual funds that have earned me >10% for the past 10 years.