https://padlet.com/rm179/zav4j7senz6oa47p Please reflect on what you've learned in our online summer school course and share with your classmates. en-us 2021-07-14 16:32:33 UTC 2025-10-14 23:54:02 UTC hello@padlet.com ckuhlman3284 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649952665 It is better to pay down your mortgage instead of investing in the stock market. First of all, paying down your mortgage earlier allows you to save money that would otherwise accumulate as interest. Also, paying down your mortgage earlier relieves you of the financial burden of having to set aside money on a monthly basis. When you invest in the stock market, your are taking a risk. If investing your money this way does not turn out well, then you will have extra financial burden on top of having to pay off your mortgage. Another benefit of paying down your mortgage instead of investing in the stock market is you get to build equity faster. This helps you by allowing you to qualify for refinancing, which can save you more money by giving you a lower APR. It can enable you to take advantage of home equity loans to be able to make improvements to your home as well. ]]> 2021-07-14 23:26:52 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649952665 lchojdecki2083 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649956374 I would pay off the mortgage first. If I do that, I know that I at least have stable housing if nothing else. The stock market is also very unpredictable, and you could end up losing all the money you invested.]]> 2021-07-14 23:31:29 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649956374 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649965115 i would pay off my mortgage first. it will help me save money rather than risking that money into the stock market. it also saves the budget plan and taking away the stress of budgeting it every month. you could lose the money if investing it the stock market. ]]> 2021-07-14 23:41:02 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649965115 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649966141 The answer is mainly affected by interest rates and the rate of return in the stock market. In today's society, it is more worth it to put your money into the stock market than it is to pay off your mortgage. Mortgages have a very low interest rate right now (on average between 1 and 3 percent) and the rate of return on investments (judging by the S&P 500) is much higher. So right now, you're not going to pay much more than your principle for most mortgages. However, a couple of decades ago, the interest rates were much higher on mortgages so then it would make sense to pay off your mortgage first. In conclusion, if the rate of return is higher than the interest rates on mortgages, invest. If it's the other way around, pay off your mortgage. Right now, you should invest.]]> 2021-07-14 23:42:13 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649966141 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649972468 I would pay off my mortgage first, so I have more leverage with my future investments and less risk because my house is already paid for.]]> 2021-07-14 23:48:11 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649972468 lbarich3039 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649973608 I would say it’s better to pay down your mortgage instead of investing more in the stock market. By paying down your mortgage you would not have to worry about making that monthly payment anymore. You could spend the money that would have gone towards it on other big purchases. Most times investing in the stock market is risky and unpredictable and if something goes wrong you may be in a worse financial situation then before.]]> 2021-07-14 23:49:12 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649973608 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649974589 I would pay off the mortgage first to eliminate debt. Paying off debt has less risk than investing in the stock market which could result in losing money. Paying off the mortgage could allow a credit score to improve, which would make getting loans in the future easier and have lower interest rates possibly. Investing more in the stock market could mean recieving a greater return and therefore profit, but it could also mean losing money if the value of stock decreases greatly. Paying down the mortgage early means that one isn't necessarily losing money because you are decreasing your liabilities by eliminating the debt.]]> 2021-07-14 23:50:12 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649974589 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649987798 Personally, I would pay off the mortgage on the house. I think that it also depends on the state of the market and how it is fluctuating, but making the down payment allows the house to be stable and does not force you to make large monthly payments. There is less risk involved compared to the stock market route.]]> 2021-07-14 23:59:17 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1649987798 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650308593 I would invest more in the stock market. Provided the stock market and your investments remain constant with the rate of return the S&P 500 has experienced in recent years, and the mortgage on the house is not extremely high, you will end up making more money off the stock market than you would save by paying off your mortgage early. The amount of money you save on your mortgage will only be determined by the amount of interest you won’t end up paying. Since most mortgages have relatively low interest rates, this won’t be as much money as you would make by investing your money in the stock market. Obviously there are risks to all investments, but based on the history of the S&P 500, you would make more money investing, even after inflation, than you would save by paying off your mortgage. In addition, by investing, you will make more money for the future. The website USNews shows some graphs about how investing early can help you make more money in the long run. In one example,  by investing now instead of in 10 years, you could make $28,000 more by retirement. This is much more money than you would save by paying off the mortgage.]]> 2021-07-15 02:01:05 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650308593 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650424736 It’s better to invest in the stock market if the return rate is higher than your mortgage because if you were to spend all the money sooner you wouldn’t be making money. The money you invest at a higher interest rate can be used to pay off the mortgage and you will still have money left over because you made more than you spent purely on interest.]]> 2021-07-15 02:44:06 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650424736 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650428454 i would invest in the stock market. the returns in the stock market now are higher than the mortgage interest rate. this means you would get more money from the stock market. in addition, mortgage interest is tax deductible which increases your cash flow even more. ]]> 2021-07-15 02:45:19 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650428454 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650447922 While I was researching it I was coming up with some mixed answers. I think it really depends on the conditions of your mortgage. When I asked my parents what they think they would do they said that they would probably split their extra money between the two, which I think is a good idea. Or if they had to pick one they would invest because they could write some of the interest on the mortgage off on their taxes. I think the smart decision would be to invest since that way you're making more money. But overall I think it honestly just depends on your own circumstances. ]]> 2021-07-15 02:53:13 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650447922 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650532401 I would personally invest in the stock market due to my parents already having some knowledge of how the market works and helping me know what to and when to invest. Although paying off a mortgage would be beneficial and help reduce or completely eliminate debt for younger people I think it would be more beneficial to learn how to invest early on in your life to understand how the stock market works younger so you can be more experienced and confident later. ]]> 2021-07-15 03:30:07 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650532401 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650543482 I would pay off my mortgage early. This way, I wouldn’t have to pay as much interest in total and it would reduce monthly payments. There is risk in investing in the stock market, and there is a chance that you could lose the money you invested.  There is no guarantee that you will make more money. It is a safer option to pay off the mortgage early.]]> 2021-07-15 03:35:48 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650543482 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650564635 I would rather invest in the stock market more. With high risk could lead to high return. Even through there is a lot of risk in the stock market, there is the chance to increase the value of stock to where there is more money to pay of the mortgage more quickly. Being able to pay more than the minimum payment for the mortgage, would also lead to better credit. ]]> 2021-07-15 03:47:21 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650564635 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650583789 I would invest in the stock market first, because it allows you to make more money. You could make money at a faster rate than the interest on your mortgage is going up and in the end have made money, whereas if you paid off your house first you would pay less, but wouldn't make a profit. ]]> 2021-07-15 03:59:40 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650583789 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650597307 I would personally invest in the stock market. I would do this because with higher risk the higher the return. It is a big step but if you do get that big return than you can use the money to pay off the mortgage and you may still have some left over. I think it is better to take the chance than just stay safe because the potential return would be great.]]> 2021-07-15 04:08:38 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650597307 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650670135 I would invest in the stock market. While it is true that there is risk involved, the potential for return is much greater. By investing, you would be able to make money faster than the rate of interest. This extra money would help you pay off your mortgage in the long run. ]]> 2021-07-15 04:50:11 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650670135 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650706072 Paying off your mortgage earlier is a better financial choice than investing in the stock market. This is because when you pay off your mortgage earlier you are reducing the total amount of interest you pay, you can build equity faster, and mortgage rates are, as of now, relatively low. While a drawback of paying off your mortgage early includes opportunity cost, what else could you have done with that extra money? And on the flip-side, an advantage of investing your money would be the potential for high returns and a disadvantage would be that there is no guarantee you will see any return upon your investment due to the risk involved. In conclusion, the safer bet is to pay off your mortgage quicker. ]]> 2021-07-15 05:07:32 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650706072 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650711964 I would personally pay off my mortgage. In general, I would think it’s better to get it out of the way and this way the monthly payments would go down and so would the interest rates. You’d be saving yourself from having to pay more in total in the future.]]> 2021-07-15 05:10:57 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650711964 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650778624 I think it is more important to pay off your mortgage first. I think so because there is a chance you can lose money by investing it, and then you will be in even more debt, so it would just be best to pay off the debt you already have before possibly placing yourself in more debt. Once you pay off your mortgage or have enough saved to cover it, then you can start to invest in the stock market and take those risks because it won’t be as much of a deal if you lose money then.]]> 2021-07-15 05:55:27 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1650778624 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651027789 I would pay off my mortgage first. Doing that would feel like a huge weight being lifted off of me. I also wouldn't risk losing money if the stock I invested in goes down. Paying off my mortgage early would also leave me more spending money. ]]> 2021-07-15 10:18:09 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651027789 cgutierrez2180 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651084430 Whether to invest in the stock market or not depends on the recent rate of return. Personally, I would pay down my mortgage first as it holds less risk and gives me the opportunity to eliminate debt. By doing this I will also be able to save money, gain a good credit score, and budget my overall savings easier. ]]> 2021-07-15 11:45:42 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651084430 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651172113 I would invest more in the stock market. You have the possibility to build more equity faster if your smart with your spending. Mortgages also have one of the lowest interest rates meaning there isn’t as much money saved when paying it off early. ]]> 2021-07-15 13:22:33 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651172113 slupo4278 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651296496 I think paying off your mortgage first is the better option. If you invest in a stock there could be a possibility that you will lose some money. If you are in debt you could risk being in even more debt. It would be best to know that your house is paid off so then you can be more willing to invest and hopefully you can gain more money. ]]> 2021-07-15 15:03:14 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651296496 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651314171 I think that investing in the stock market would be a better use of extra money than paying off your mortgage. For the last 100 years the average rate of return on the stock market is about 10%. The interest rate on a 30 year fixed mortgage is about 3%. If you invest in the stock market you will on an average year make more money than you would “lose” in interest from the mortgage.]]> 2021-07-15 15:18:37 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651314171 ymalko4282 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651384348 After discussing with my parents and reading a few articles, I've come to the conclusion that investing in the stock market is a better choice than paying your mortgage early. One article gave an example that you have a 30-year mortgage of $200,000 with a fixed rate of 4.5%. You're able to come up with an extra $300 per month and if you use it on your mortgage you will pay it off 11 years earlier. However, if you use those monthly $300 by investing in stocks, at the end of 19 years you'd have enough money to pay off the mortgage plus have much more extra money as well.]]> 2021-07-15 16:26:56 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651384348 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651384507 I would pay off mortgage early. When I talked to my dad his opinion was investing in stocks. I think if you are specifically paying off mortgage after college it is important to get those finances out of the way. College is very expensive these days. Student debt can really add up. It is important to not make as many risks if you already have large finances you are focused on paying back. I would definitely think about investing in stocks and making those risks, but I think I would want to get my mortgage out of the way. I think that would be less stress-inducing. ]]> 2021-07-15 16:27:08 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651384507 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651409058 I would try to pay off my mortgage early. It would be a burden that I would always be worrying about if I didn't get it done with. There is also a risk that you will lose money in the stock market and that’s not a risk I would be willing to take when trying to pay off bills. ]]> 2021-07-15 16:50:07 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651409058 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651415385 Paying off mortgage first would be the better option. You could possibly lose money by investing in a stock. It would be better to pay off your house. ]]> 2021-07-15 16:56:46 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651415385 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651561214 I would say it’s better to invest more in the stock market, especially if you plan on staying in your home for the duration of the mortgage payment. You can find some success in the stock market if you do your research smartly, and if you do really well, then you can even be able to pay off both your mortgage and have additional money left over from successful stock investments. I think it’s not smart to pay off your mortgage as soon as possible and you should explore other options first. ]]> 2021-07-15 20:09:33 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1651561214 https://padlet.com/rm179/zav4j7senz6oa47p/wish/1652211295 Paying off your mortgage, I think, is more important and that better path to go because you have the risk of losing money if you invest in stock. By paying off your debt early as well it helps with credit and your over all savings. ]]> 2021-07-16 03:47:46 UTC https://padlet.com/rm179/zav4j7senz6oa47p/wish/1652211295