Is prepaying a 6% mortgage smart or just buying peace of mind?
Paying off a 6% mortgage early feels great emotionally, but I ran the numbers on a $250,000 balance over 15 years and the stock market only needs to return about 6.5% annually to beat it. Factor in the mortgage interest deduction and that gap widens. So is aggressively prepaying your mortgage actually the smart move, or just an expensive way to buy peace of mind?