Ramit Sethi breaks down when to pay off your mortgage versus invest. If your rate is below 5%, skip extra payments and invest instead. At 6-7%, split extra cash equally between both. Most people feel better holding cash, even if it costs them emotionally.
Here's a good guideline to simplify this process. If the interest on your debt is less than 5%, I personally would pay the minimum, and I would invest the extra money that I have. I would set up automatic payments and automatic investing. You could do this right now, so you don't even have to think about it. If your mortgage is at 6 or 7%, I would probably split the difference. I would put half towards mortgage payments, half towards investing. That way, you're making progress on both fronts, and you're making a decision based on what the numbers actually say. Like, if I asked you, hey, do you want to pay $400,000 extra just to feel a little better, you'd be like, no, I want $400,000 in my freaking bank account.
