Originally Posted by
O R C A
If I were to buy a home right now with a 7% mortgage where should any excess dollars go? Pay down the mortgage or invest with a long term 5% bond?
7% > 5%. Unless you think you WILL beat 7%, pay down your mortgage first, the earlier the better so the excess has longer amortization to work for you. You are guaranteeing 7% return on every dollar you pay down your mortgage to the maturity date.
Disclaimer, I'm not a financial expert.