This post comes from J.D. Roth at partner blog Get Rich Slowly.
Because I recently eliminated all of my nonmortgage debt, I have a significant positive cash flow. The $1,000 per month I was putting toward debt can now be used for investing. I'm making maximum contributions to my Roth IRA, of course, but that still leaves several hundred dollars each month available for other purposes. This has forced me to re-evaluate my financial goals.
For the past year, my wife and I have discussed making accelerated payments on our mortgage. I've written about this choice several times at Get Rich Slowly, and it seems clear that mathematically it makes more sense to invest the money. However, it's also clear that eliminating a mortgage offers a tremendous psychological boost. I've never heard anyone say they regret owning their home outright.
I've researched a variety of mortgage-acceleration schemes:
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