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Should I pre-pay my mortage if I will likely sell (~10 years) before coming close to paying it off

More detail -- should I max out on my 401k (tax consequences are minor), or pre-pay a 30 year mortgage, when I likely will sell the property after living in it 10-15 years?

Comments

  • First, how much liquidity do you need and do you have enough after pre-paying your mortgage to handle at least six months of expenses in case of an emergency? If you don't you probably shouldn't pre-pay as then your house rich and cash poor. Assuming you do have enough liquidity, you should compare the interest rate you pay on your house to your expected returns on existing and future investments. If you expect to earn more from your investments than your mortgage rate, why not put the money you use to pre-pay the mortgage into those investments instead?
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